Arden University

MSc Project Management Level 7

PRM7002 – Management of Projects

Case Study Based Report – Office Relocation Project

STU65947

Hugh Smith

4950
Executive Summary
Ranked No. 1 on both Fortune's 2019 World's Most Admired Companies List in Engineering and
Construction and (ENR)’s 2019 Top 500 Design Firms List; CHSL (JACOBS) anticipates higher than usual
growth of the company within the KSA region.

Based on this and after the investment into acquiring ISO certification for the KSA office, the company
must now continue to improve in how it currently operates in order to be more efficient and
competitive. This report presents an overall very high-level framework based on the PMBOK Guide
into what strategy it will implement and how.

The information presented in this report is guided by existing literature, case studies and actual
practical experience.

This report critically evaluates some of the many project management principles related to the
initiation and planning stage of the project delivery cycle. These two stages typically contain high level
management strategies and if required to further support or justify the strategy, additional plans that
could be applied to the relocation project in order to help ensure success.

Scope, risk and communications management clearly identifies what needs to be done why, by whom,
by when and identifies some activities that show as critical path. From the level and depth of
information presented, it is evident that risk and communication management are key strategies that
will make or break the project and so these sections are the most detailed.

The focus of the report is to demonstrate a critical understanding of approaches and not the
application of tools and so is only a guideline for the management team to be effective and reminded
of what it would take to make this office relocation project a success.

At the time of preparing this report, the initiation and delivery phase had already commenced but at
the finalisation of the report, the office relocated was completed 2 weeks after the planned
completion date for exactly the reasons mentioned in the risk register.

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Table of Contents
List of Abbreviations ............................................................................................................................. iv
List of Figures .......................................................................................................................................... v
List of Tables ........................................................................................................................................... v
1. Introduction .................................................................................................................................... 1
1.1 Project Background ................................................................................................................. 1
1.2 Financial Analysis (ROI) ........................................................................................................... 1
1.3 Project Aim.............................................................................................................................. 2
1.3.1 Clients are our Valued Partners ...................................................................................... 2
1.3.2 People are the heart of our Business .............................................................................. 2
1.3.3 Performance Excellence is our Commitment.................................................................. 2
1.3.4 Profitable Growth is Imperative...................................................................................... 2
1.4 Project Delivery Model ........................................................................................................... 2
2. Section 1 ......................................................................................................................................... 3
2.1 Scope Management Strategy .................................................................................................. 3
2.1.1 Project Scope Statement................................................................................................. 4
2.1.1.1 Project Team ............................................................................................................... 4
2.1.1.2 Project Scope .............................................................................................................. 4
2.1.1.3 Project Deliverables .................................................................................................... 4
2.1.1.4 Project Constraints...................................................................................................... 4
2.1.1.5 Project Assumptions ................................................................................................... 5
2.1.1.6 Project Dependencies ................................................................................................. 5
2.1.1.7 Project Milestones ...................................................................................................... 5
2.1.2 Work Breakdown Structure ............................................................................................ 5
2.1.3 Project Schedule ............................................................................................................. 7
2.1.4 Budget Estimate .............................................................................................................. 8
2.1.5 Scope Change Management ........................................................................................... 9
2.1.6 Scope Adjustment ........................................................................................................... 9
2.2 Stakeholder Management Strategy ...................................................................................... 10
2.2.1 Introduction .................................................................................................................. 10
2.2.2 Stakeholder Analysis & Communication Strategy ........................................................ 11
2.2.3 Communication Plan ..................................................................................................... 12

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 2.3 Risk Management Strategy ................................................................................................... 13
2.3.1 Purpose ......................................................................................................................... 13
2.3.2 Risk Management Plan.................................................................................................. 14
2.3.2.1 Identification ............................................................................................................. 15
2.3.2.2 Evaluation & Analysis ................................................................................................ 17
2.3.2.3 Mitigation .................................................................................................................. 18
2.3.2.4 Review ....................................................................................................................... 18
2.4 Quality Management Strategy .............................................................................................. 19
2.4.1 Purpose ......................................................................................................................... 19
2.4.2 Project Deliverables (Responsibility Matrix) ................................................................. 19
2.4.3 Project Processes (Procurement Plan) .......................................................................... 20
2.4.3.1 Needs Analysis .......................................................................................................... 20
2.4.3.2 Sourcing & Pricing Options ....................................................................................... 20
2.4.3.3 Purchase Order ......................................................................................................... 20
2.4.3.4 Delivery, Inspection & Payment................................................................................ 20
2.4.3.5 Record Maintenance ................................................................................................. 20
2.4.4 Quality Standards (Checklists) ...................................................................................... 20
3. Section 2 ....................................................................................................................................... 21
3.1 Performance Monitoring & Management ............................................................................ 21
3.1.1 Key Performance Indicators (KPIs) ................................................................................ 21
3.1.1.1 Schedule/Time based ................................................................................................ 21
3.1.1.1.1 (SPI) ..................................................................................................................... 21
3.1.1.1.2 Productivity ......................................................................................................... 21
3.1.1.2 Cost based (ROI) ........................................................................................................ 22
3.1.1.3 Scope based .............................................................................................................. 22
4. Conclusion .................................................................................................................................... 23
References ............................................................................................................................................ 24
Appendix A – Scope Change Log (Company Template) ...................................................................... 26
Appendix B1 – Qualitative Risk Analysis (Company Template).......................................................... 27
Appendix B2 – Quantitative Risk Analysis (Company Template) ....................................................... 28
Appendix C1 – Responsibility Matrix (Sample) ................................................................................... 29
Appendix C2 – Moving Checklist (Sample) .......................................................................................... 31

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List of Abbreviations

CER - Capital/Expense Request

CHOL - CH2M Olayan
CHSL - CH2M Saudi Ltd
COMMS - Communications
ENR - Engineering News Record
HR - Human Resources
HSE - Health, Safety & Environment
ISO - International Organization for Standardization
IT - Information Technology
JCB - JACOBS
KPI - Key Performance Indicators
KSA - Kingdom of Saudi Arabia
MODON - Saudi Authority for Industrial Cities and Technology Zones
MOMRA - Ministry of Municipal & Rural Affairs
NWC - National Water Company
OHSAS - Occupational Health and Safety Management Certification
PDCA - Plan-Do-Check-Act
PEP/PMP/PXP - Project Execution Plan (aka Project Management Plan)
PMBOK - Project Management Book of Knowledge
PMI - Project Management Institute
QMS - Quality Management System
RACI - Responsibility, Accountability, Consultation/Informed
REO - Real Estate Operations (JACOBS)
ROI - Return on Investment
SAR - Saudi Arabian Riyals
SQ.M - Square Metres
SWCC - Saline Water Conversion Corporation
UAE - United Arab Emirates
USD - United States Dollar
WBS - Work Breakdown Structure

iv
List of Figures

Figure 1 - Project Life Cycle Representation by JACOBS ......................................................................... 2

Figure 2 - Project Scope Management Overview ................................................................................... 3
Figure 3 - CHSL Project Work Breakdown Structure Tree....................................................................... 5
Figure 4 - Project Planned Schedule for CHSL Office Relocation ............................................................ 7
Figure 5 - Example of Stakeholder Analysis Context Diagram .............................................................. 10
Figure 6 - The Cyclical Risk Management Process ................................................................................ 13
Figure 7 - Pictorial summary of Risk Analysis Process .......................................................................... 17
Figure 8 - Company’s Standard Risk and Opportunities Assessment Matrix........................................ 18

List of Tables

Table 1 - Plan Scope Management: Inputs, Tools and Outputs for CHSL Project................................... 4
Table 2 - Work Breakdown Structure (WBS) for CHSL ............................................................................ 6
Table 3 - CER Summary for CHSL Office Relocation Project ................................................................... 8
Table 4 - Scope Adjustment Methods..................................................................................................... 9
Table 5 - Stakeholder Analysis & Management Matrix ........................................................................ 11
Table 6 - Indicative Communication Plan for CHSL Project .................................................................. 12
Table 7 - Risk Management Strategy Components............................................................................... 14
Table 8 - Risk Identification Process (Methods).................................................................................... 15
Table 9 - High Level Risk Plan & Mitigation Strategy ............................................................................ 16
Table 10 - Differences between Qualitative vs. Quantitative Risk Analysis Methods .......................... 17
Table 11 - Quality Management Strategy Components ....................................................................... 19

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1. Introduction

As part of the JACOBS group restructuring in KSA, on 28 February 2019, Olayan Financing Company
completed the sale of their shares in CH2M Olayan Company Limited (CHOL) to CH2M HILL
International Ltd. At the same time, CHOL changed its name to CH2M Saudi Limited (CHSL). The actual
premises occupied by CHSL, property of the Olayan Group, therefore needs to be vacated before 31
August 2019.

In parallel, consequently to the sale of the ECR business to WorleyParsons, CHSL becomes the only
engineering entity for the Jacobs Group in KSA, with a plan to generate revenue of USD30M in 2019.

1.1 Project Background

Qualitatively, the current landlord has requested Jacobs to move out from the existing premises as
they have some internal expansion plans. As a result, Jacobs received a 2 months lease extension until
31-Aug-19, implying that Jacobs must move out from the existing premises by end of August 2019.

Quantitatively speaking, from the actual headcount of just 10 employees based in the present office,
the new Riyadh Office will have to cater for 30 to 40 staff members in the foreseeable future of 2
years, hence a targeted space of approximately 350 to 400 sq.m.

The existing location will also not accommodate the forecasted growth due to recent project wins, so
management has decided to move to a better place with lower rental cost. Currently Jacobs is paying
SAR 1200 per sqm however new rental cost will be SAR 950 per sqm.

In total 12 options were initially identified, 4 short-listed and visited, and finally Legend Tower retained
since it offers the following characteristics:
 Least lease cost (25% less than any other identified option) at SAR 950/sq.m + 5% charges,
whereas the lowest alternative was at SAR 1200/sq.m + 10% service charges (comparable to
the present lease at SAR 1200/sq.m)
 More parking spaces allocated to the office, ten (10) in total includes two (2) visitors parking
spaces.
 Very good condition of the building (high quality finishing material) despite the age of the
building compared to other options.
 Strategic location.

The selected office in Legend Tower is at walking distance from the NWC, SWCC and Centria Mall
metro station (to be operational by mid-2020), and within 10 minutes’ drive of MODON and MOMRA
offices. In addition, it is close to the Tahliyah and Olaya streets, considered as the most attractive
streets in Riyadh.

The selected property has an area of 390 sq.m., which can cater for 37 desks + 1 conference room + 3
quiet rooms & amenities.

1.2 Financial Analysis (ROI)

To maintain confidentiality of company information, only a summary of the analysis is presented here.
Based on the FY19 annual revenue and gross margin and the projected revenue, the office relocation
project will achieve a payback in just 0.19 years with a three-year IRR of 79.61% assuming a
commitment term of 3 years. This is based on the highest possible cost estimates.

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1.3 Project Aim
This significant change delivers 4 expected outcomes for CHSL against the overall corporate values:

1.3.1 Clients are our Valued Partners

Stakeholders first – it aligns CHSL operations in the same market as major international competitors
including local consultancy firms of which the majority are in Riyadh; majority of current projects
including upcoming bids is with Clients NWC, SWCC, SWPC, MODON & MOMRA. Being centrally
located in Riyadh is consistent with other competitors that are located close to Stakeholders.

1.3.2 People are the heart of our Business

Empower our people – being centrally located in Riyadh City will provide CHSL with better access
to resources (transport, access, central location) and will support the future workforce needs and out
of scope functions of CHSL. The aim here is to retain staff and provide a professional, supportive work
environment which in turn will improve overall efficiency and staff morale.

1.3.3 Performance Excellence is our Commitment

Work smart – operating from one large location will enhance CHSL’s culture by having front and back
office staff working together in a professional supportive team and work environment. This will in turn
improve overall efficiency and staff morale.

1.3.4 Profitable Growth is Imperative

Continuously improve – by continuously improving our ways of working and constantly changing and
adapting to new changes both socially and economically, it would help drive business further in order
to produce returns that meet and/or exceed the financial investment in this project.

1.4 Project Delivery Model

As mentioned earlier, the KSA office recently acquired its own ISO accreditations (ISO 9001:2015 &
OHSAS 18001:2007) and as such has available at its disposal the company’s BMS system which is
established on four pillars of a QMS: quality management principles, process approach, risk-based
thinking and Plan-Do-Check-Act (PDCA) cycle.

Figure 1 is a snapshot of the overall BMS system within JACOBS within which exists corporate policies
(global and regional) and supporting information (plans, documents, checklists) to effectively manage
the project delivery cycle. This is based on the project life cycle as described within PMBOK 2017.

Source: Adapted & modified based on PMBOK Guide 2017, Figure 1-2, p.548
Figure 1 - Project Life Cycle Representation by JACOBS

The following pages present strategies and plans which form part of the initiation and planning phases
and that will help make this office relocation project a success. It is in no way an in-depth analysis and
application of tools or processes but is an introduction that indicates that no matter what the project
and its size, a good strategy and set of tools is always beneficial.

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2. Section 1

2.1 Scope Management Strategy

According to the PMBOK Guide (2017), scope refers to the detailed set of deliverables or limits of a
project derived from a project’s requirements; project scope management includes the processes
and/or components required to ensure that the project includes all the work required, and only the
work required to complete the project successfully.

Source: PMBOK Guide 2017, Figure 5-1, p.130

Figure 2 - Project Scope Management Overview

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Put simply, scope management is the process whereby outputs, outcomes and benefits are identified,
defined and controlled (APM, UK). It is a set of tasks and/or steps that would help the project manager
manage the project deliverables.

Inputs Process Outputs

 Business Case  Define project scope,  Scope Statement
 CER boundaries, assumptions,  Work Breakdown
 Lessons learned from constraints & success Structure (WBS)
previous similar projects criteria  Scope change control plan
 Prior experience &  Assigning work to people
knowledge  Verifying work
 Updating the scope from
authorised changes
Source: Adapted from PMBOK Guide 2017, Figure 5-2 & 5-4, p.134 & 138
Table 1 - Plan Scope Management: Inputs, Tools and Outputs for CHSL Project

2.1.1 Project Scope Statement

For this office relocation project presented below and defined by PMBOK Guide 2017, as the
description of the project scope, major deliverables, assumptions and constraints.

2.1.1.1 Project Team

The project team is made up of primarily the Company’s Real Estate Operations (REO) team which
includes the real estate and facilities departments of the Company. To facilitate the local coordination
and management of the project, CHSL has assigned one of their project managers to oversee the
delivery of this project.

Facilities Manager: Mr. Sunil Mishra (UAE)

Facilities Team: Mr. Ali Alshahrani, Mr. Ali Alnafa (KSA)
Project Manager: Mr. Alastair DeSouza (KSA)

2.1.1.2 Project Scope

For this project we must effectively plan and with minimal to no disruption relocate the current CHSL
office based in Al Malaz, Riyadh to the new location in Al Olaya, Riyadh. For this project to be a success,
we must plan and ensure that the new office space is painted, carpeted and furnished ready for the
entire office to move in just like a plug-and-play setup.

2.1.1.3 Project Deliverables

In order to achieve the above objective, an accurate schedule of the tasks must be created, together
with a presentation of the costs associated with the move which must include the vendors and/or
contractors themselves. Finally, the risks associated with the project must also be defined,
documented and most importantly be communicated to the relevant people, in our case, the
stakeholders.

2.1.1.4 Project Constraints

For this project, a few constraints involved include the project schedule, reliability of Contractors and
the capital costs. These constraints can be further referenced to the iron triangle (aka Triple Constraint
or Project Management Triangle) which is a representation of the most basic criteria by which project
success is measured; namely time, quality and cost (Atkinson, 1999).

For this case project, the objective will be to optimise the outcome in relation to all three constraints
of cost, time and quality.

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2.1.1.5 Project Assumptions
The project assumes that there exists existing IT/Comms infrastructure to support the business
requirements and that the project proposal and CER are approved.

2.1.1.6 Project Dependencies

Project success will also depend on the quality of the vendors (such as carpet suppliers, utility
providers) and/or contractors (such as the hired moving company, fit-out personnel).

2.1.1.7 Project Milestones

The office relocation will consist of the following major milestones:
 (1) One: Project Proposal & CER approved
 (2) Two: Group 1 Move Ready
 (3) Three: Group 2 Move Ready
 (4) Four: Mobilisation & Works Complete
 (5) Five: Final move to new office is complete.

Once the Scope Statement is complete, the next step is to break it down to its most manageable
pieces; the purpose of which is to develop a complete list of all the tasks that will be used to determine
the resources required such as time, skills and cost estimates. This information then feeds into the
project schedule establishing a baseline which can then be ultimately used for project monitoring and
performance measurement (refer Section 2). The output is the Work Breakdown Structure or WBS.

2.1.2 Work Breakdown Structure

The PMBOK Guide (2017) defines the work breakdown structure (WBS) as a "hierarchical
decomposition of the total scope of work to be executed by the project team to accomplish project
objectives and create the required deliverables."

Office
Relocation

Initiate Plan Manage Close

Project Project Move Lessons

Charter Proposal Complete Learned

Source: Adapted from PMBOK Guide 2017, Section 5.4.2, p.158

Figure 3 - CHSL Project Work Breakdown Structure Tree

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The WBS visually defines the scope into manageable chunks that a project team can understand, as
each level of the WBS provides further definition and detail. Table 2 below provides a detailed list of
activities, tasks and milestone set to ensure that the project is successfully completed.

The WBS can be as complicated or simple as required. What is presented here is a high-level summary
within which exists further data/activity not shown for simplicity.

JACOBS RIYADH OFFICE RELOCATION

ACTIVITY ID & NAME MILESTONE
1.1. PREPARATION OF NEW OFFICE
1.1.1.Project Proposal & CER
1.1.1.1. Preparation
1.1.1.2. Approval 
1.1.2.INTERIOR FIT-OUT
1.1.2.1. Carpeting Company
1.1.2.1.1. Award Vendor
1.1.2.1.2. Award Contractor
1.1.2.2. Painting Company
1.1.2.2.1. Award Contractor
1.1.2.3. Furnishing & Fitting Company
1.1.2.3.1. Award Furnishing Contractor
1.1.2.3.2. Award Fitting Contractor
1.1.2.3.3. Award IT & Comms Contractor
1.1.3.MOVING & PACKING
1.1.3.1. Award Moving Company
1.1.3.2. Group No.1 Move 
1.1.3.3. Group No.2 Move 
1.1.4.MOBILISATION & WORKS COMPLETE
1.1.4.1. Mobilisation Complete 
1.2. RELOCATION OF EMPLOYEES
1.2.1.Notification to Stakeholders
1.2.1.1. Notify Managers
1.2.1.2. Notify Employees
1.2.2.Group No.1
1.2.2.1. Employees Boxing Up
1.2.2.2. Employees Moving to New Assigned Space
1.2.2.3. Employees Connected to New IT & Comms Network
1.2.3.Group No.2
1.2.3.1. Employees Boxing Up
1.2.3.2. Employees Moving to New Assigned Space
1.2.3.3. Employees Connected to New IT & Comms Network
1.3. MOVE COMPLETE
1.3.1.Move Complete 
Table 2 - Work Breakdown Structure (WBS) for CHSL

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2.1.3 Project Schedule
A Gantt chart is one of the many project management tools that can be used not only to demonstrate a project schedule but also a good technique of reporting
and tracking progress, costs, resources. For this project, Primavera P6 software has been used to develop the Gantt chart and is presented in Figure 4 below.

Figure 4 - Project Planned Schedule for CHSL Office Relocation

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2.1.4 Budget Estimate

ITEMS

Lease - Commercial Base Rent 001 Expense $ 280,765 REO

(Total Lease Cost)

Lease - Commercial Op Ex 002 Expense $ 30,400 REO

(Total Est. Op Ex)

Lease - Commercial Fit out 003 Capital $ 229,047 REO

(One time)

Lease - Commercial LL TI 004 Capital $ - REO

(One Time)

Lease - Commercial FF&E 005 Capital $ 99,927 REO

(One time)

Lease - Commercial Non Cap Expense 006 Expense $ 6,737 REO

(One time)

Lease Commercial Broker Commission 007 Expense $ 21,057 REO

(One time)

Other IT Recurring Costs 008 $ 126,278 Regional IT

(Total Cost)

Other IT One Time Costs 009 $ - Regional IT

(One time)

TOTAL CER $ 794,210

Basis of Estimates/SF
Fit Out $ 54.41
FF&E $ 23.74
CER QUALIFIERS IT Recurring $ 30.00
A - Fit Out B- FF&E C - Non Cap/Expense D-IT IT One time
Architect FF&E Moves AV Non Cap Exp $ 1.60
MEP Broker Commission Telecom
Cabling Circuit LL Funded TI/SF $ -
GC Broker Comm. Paid By Jacobs
Security Broker Commission % 7.50%

Table 3 - CER Summary for CHSL Office Relocation Project

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2.1.5 Scope Change Management
An important component of scope management is the scope change control plan, which specifies the
process for the submission, review, approval and registration of changes to scope.

Over the course of a project, change is unavoidable and so the purpose of scope change management
plan is to establish a process that will minimise scope creep which is expected of all projects either as
an increase or decrease in project scope without compromising the project objective and constraints
as identified by the sponsor, CHSL in section 2.1.1.2 and 2.1.1.4 above.

Depending on the complexity of the project, some of the tools or components of a scope change
control plan (see Appendix A for typical company template) could include:
 Project Change Request Form – must be used to request any changes no matter what and
would typically include a justification for the change, the person requesting the change and
any and/or all supporting information to justify the change.
 Scope Change Analysis – must be done to determine the overall impact to the project
irrespective of impact to time or budget.
 Scope Change Approval – usually carried out by a pre-identified group of people (either
internal or external). For a company the size of JACOBS, this is usually based on the value of
the project being carried out.
 Update project scope statement – critical that any approved change is reflected into any
project plans (typically PEP) which in turn would feed back into the WBS or schedule.
 Communicate changes to scope – while critical to project success, it depends on the
significance of the change to decide the audience.

2.1.6 Scope Adjustment

Once changes to the project scope have been approved, the project manager typically needs to
update all project plans and communicate these changes to all stakeholders.

Some of the ways to adjust the scope include but not limited to:
How to What is it & its impact
1. Project Baseline Some approved change requests may in turn affect the WBS
and/or the project scope. These changes may update specific
components of the project execution plan such as schedule,
budget, risk and quality.
All approved changes must be documented via a change
control log/register and be communicated to all stakeholders.
2. Communication All and/or any project plans affected by approved scope
changes must be updated and changes communicated to
stakeholders. Failure to do this could lead to dissatisfaction or
oversight and increase project risk.
Changes can be communicated via an established plan or
status reports.
3. Lessons Learned It is important to capture any lessons learned throughout the
project lifecycle to finalise the overall project scope.
The idea is to help future projects learn from any failures,
successes and actions taken.
Table 4 - Scope Adjustment Methods

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2.2 Stakeholder Management Strategy
This strategy identifies and documents the approach to take in order to increase support and decrease
negative impacts of stakeholders throughout the life of the project. It should identify the key
stakeholders along with the level of power and influence they have on the project and document a
plan to keep them engaged through every stage of the project.

2.2.1 Introduction
The PMBOK Guide (2017) will be used to identify and classify project stakeholders; determine
stakeholder power, interest, and influence; and analyse the management approach and
communication methodology for project stakeholders.

Figure 5 below shows an example of this high-level analysis using a notation similar to (Cleland,
1998).

Source: Adapted from https://www.pmi.org/learning/library/stakeholder-analysis-pivotal-practice-projects-8905

Figure 5 - Example of Stakeholder Analysis Context Diagram

According to Struckenbruck cited in Atkinson (1999), the most important stakeholders are the project
manager, top management, customer and/or client and the team members.

Using this we identify the key stakeholders of this office relocation project to include the following
five groups: real estate operations team, senior management (regional & global), employees,
vendors/subcontractors, and customers. The upper management and employees (represent the staff
and managers in the Finance, Human Resources and IT departments) are part of the CHSL Company.

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2.2.2 Stakeholder Analysis & Communication Strategy

STAKEHOLDER SELECTION CRITERIA

1 Does the person hold a position from which they can influence the project?
STAGE 1

2 Does the person have any special skills or capabilities the project will require?

3 Does the person have an impact on the project’s resources (personnel, funding)?

4 Will the person be directly or indirectly affected by this project?

Does the person potentially benefit from the project or are they in a position to resist
5
this change?

STAKEHOLDER POWER/INFLUENCE – INTEREST MATRIX

ID Stakeholder Role Power Interest

1 Company’s Real Estate Department Medium High

STAGE 2

2 Company’s Upper Management High Medium

3 Company’s Employees Medium Medium

4 Vendors/Sub-Contractors High Low

5 Customer/Client Low Low

STAKEHOLDER MANAGEMENT STRATEGY

ID Key Concerns Communication Strategy
Project performance and result must Communicate results and project
1
meet or exceed expectations performance via status reports and updates.
STAGE 3

Scheduling and costs constraints for Frequent updates and develop alternatives
2
project once approved (minimise disruptions) post approval
Allow staff to work with stakeholder to
3 Questions regarding project scope
answer questions and address concerns
Ensuring on time, budget and scope Communicate project schedule and
4
delivery of project requirements requirements ahead of time
Company image, minimal disruption to Communication via email or like before and
5
ongoing business activities after move is complete
Table 5 - Stakeholder Analysis & Management Matrix

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2.2.3 Communication Plan
With communication identified as key to success for a project such as this, detailed below is a
communication plan that may be followed to comply with the stakeholder management strategy
detailed in Table 5 above.

What to Target
Purpose When Type/Method
communicate Audience
Project All Overall project Before start Group sessions,
Initiation/Launch Stakeholders scope open offices

Managers of Project - Discuss the placing Before the - Face to Face

Departments Manager of the move and - Email
different managers building of - Phone
from each cubicles
department into the
larger
offices or larger
cubicles
Employees Project - Communicate the - After - Email
Manager move to discussing - Face to Face
Employees plan for the - electronic, if
- Roles & departments needed
responsibilities - Before - "huddle"
getting the meeting, if
move needed
started
Vendors / Project - Make - Tied to - Phone
Contractors Manager & decisions major - Hard copy
Key - Fully kept abreast milestones contracts
Stakeholders of status - Before and - Face to face
- Time required to during the - Phone calls
complete move
- Sequence of move
Customer/Client Project - For official - Before, during - Mass
Manager & Key correspondence and after move communication
Stakeholders - Official meetings is complete - Update
company
registration
Table 6 - Indicative Communication Plan for CHSL Project

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2.3 Risk Management Strategy
Successful projects require effective and efficient risk management; and so proper risk management
is a critical part of the project decision-making process (Kangari cited in Nguyen & Li 2012) as it can
assist to mitigate against both expected and unexpected risks in all kinds of projects (Carbone, T. 2004,
p. 28).

Risk management is not only about identification, analysis and response but has evolved to now
include new risks appearing after the response stage, essentially making it a cyclical process of five
phases (Baker, Ponniah and Smith, 1998, p. 569).

Applying the PDCA cycle to risk management would divide the overall risk management process into
four phases as identification, analysis, control and reporting (Fung et al., 2003).

2.3.1 Purpose
The purpose of the Risk Management Strategy is to outline a Risk Management Strategy which
facilitates the effective recognition and management of risks facing the Company during the relocation
of its existing office.

Risk management strategy does not focus upon risk avoidance but on the continuous identification
and management of an acceptable level of risk throughout the project lifecycle which reaffirms the
view of some authors including that of the APM & PMI, that say risk management is a cyclical process
(see Figure 6 below).

Source: Cyclical Risk Management Process (Baker et al., 1998, p. Source: Cyclical Risk Management Process (Kliem & Ludin, 1997, p.
569) 236)
Figure 6 - The Cyclical Risk Management Process

The project’s risk management strategy sets the project on a course for managing risk throughout the
life of the project so that in the event of any deviation either positive (an opportunity) or negative the
project will produce satisfactory results from the organization’s point of view.

The overall responsibility for implementation of the Risk Management Strategy specific to this project
is shared by all identified stakeholders as in Section 2.2.2 and is shown Table 7 below

13
 WHAT HOW
1 General Risks a. A risk plan (Section 2.3.2, Table 9) must be prepared that would
list at a high level the major risks and a response plan that would
help address the risks.
b. A risk register (qualitative or quantitative, Section 2.3.2 &
Appendix B1 & B2) would then be prepared to assess, evaluate,
mitigate the risks and would involve continuous review which
would feed into other project related documentation.
2 Stakeholder Tolerance Risk tolerance is a qualitative expression of the degree of liking to a
project risk; risk threshold is its quantitative expression.

a. A survey or project kick-off meeting with all stakeholders would

identify risk areas and tolerance levels. This would feedback into
the risk management strategy and in the change management
strategy documents.
3 Objectives a. Develop a risk map identifying and ranking all significant risks
facing the project and eventually assist the achievement of the
Company’s business strategy by being proactive rather than
reactive.
b. To allocate clear roles, responsibilities and accountabilities for
risk.
c. A communication plan to raise awareness of the risk
management process which in turn will obtain staff commitment.
4 Accountabilities (Roles Determining accountability for assuring risk management objectives
& Responsibilities) are met is critical throughout the project life cycle. Some questions
to consider answering in the Plan Stage could include:
 Who is the approver of the Risk Management Plan?
 Who determines the risk analysis approach (qualitative,
quantitative, or combined) in the Plan Stage?
 Who determines the risk response in the Plan Stage?
 What is frequency of monitoring, review and updating of Risk
Management Plan?
Table 7 - Risk Management Strategy Components

2.3.2 Risk Management Plan

The single most important part of a risk management process is recognizing the risks. Only by
recognizing risks, a company and in turn the project manager can start to think of a way to prevent
them or mitigate their effect if they occur. (Vesterinen cited in Kotonen 2017)

Risk management essentially involves four key steps:

1. Identification
2. Evaluation & Analysis
3. Mitigation
4. Review

A risk management plan is a document that brings together all the above 4 steps which helps the
project team manage risks to meet the overall project objectives.

14
2.3.2.1 Identification
As mentioned in section 2.3.1, risk identification should be done continuously throughout the project
life cycle because as a project progresses, changes are inevitable – particularly in terms of budget,
schedule, or scope. Caron’s 2010 study (cited in Nguyen & Li 2012) highlighted that risk identification
is an interactive and continuous process because many new risks may emerge throughout the
project’s life cycle

There are many different techniques (see Table 8 below) under three main groups available for use in
the risk identification process. Given the simplicity and scale of this case project, brainstorming group
techniques has been selected for the exercise of risk identification.

Group Technique What is Involved

Bringing together the entire project team (can include
Brainstorming stakeholders) and giving everyone an equal opportunity
Sessions to point out potential risks. The goal is exactly to list as
many risks as possible.
Brainstorming  Using past similar projects done within the company
is an important source of relevant risks and their
Historical Data
impact.
(Lessons Learned)
 Another source is internet research which can identify
external risks that might have repercussions.
Might not be as relevant but can be useful because
brainstorming might not reflect all risks especially if they
were regarded as irrelevant at the beginning of the
Interviews Expert Interview
process. It might therefore be helpful to consult with
other managers who have managed or taken part in
previous projects.
A forecasting process framework based on the results of
multiple rounds of questionnaires sent to a panel of
experts. The anonymous responses are aggregated and
shared with the group after each round. The experts can
adjust their answers in subsequent rounds, based on how
Delphi Method
they interpret the "group response" that has been
provided to them. Since multiple rounds of questions are
asked and the panel is told what the group thinks, the
Diagrams Delphi method seeks to reach the correct response
through consensus.
A technique more common to controlling project quality.
One tool here is the cause and effect diagram (aka
Ishikawa or Fishbone diagram). It focuses on identifying
Root Cause Analysis how different factors relate to a certain problem in the
execution of the project. The basic idea of this tool is to go
beyond the apparent cause of a defect and to identify its
root, primary cause.
Source: Adapted from https://www.celoxis.com/project-management/chapter/controlling-project-risks
Table 8 - Risk Identification Process (Methods)

The output of this phase is a risk & opportunities plan/register which is a common uniform easy to
read and understand format to present identified risks presented for this project in Table 9 below.

15
STAKEHOLDER
RISK PLAN
ID
APPROVALS/LEASE/AGREEMENTS
Delay in upper management Company system follows an approval
approvals workflow and issues notifications
 Set a required by date in CER
request
New office is not ready for full Unable to extend lease any further
1, 2 occupancy on 31 August 2019 due to current landlord expansion
plans.
 Constant communication through
email, phone, in-person meeting
to go over schedule for each
aspect
VENDOR/SUPPLIER – Furnishings & Fittings
Painting and carpeting supply Check into delivery schedules for each
item and make sure they are ordered
far enough in advance
Office furnishing & fittings Make sure employees are told in
advance, have a plan for move and
reminders of move by date
4 CONTRACTOR/SUB-CONTRACTOR – Furnishings & Fittings
Painting and carpeting contractors Check into manpower available to
take longer than anticipated ensure work is complete
Office furniture & fit-out is delayed Check into manpower available to
ensure work is complete
Moving company delays Having a one-one meeting ahead of
time making aware of when they
need to be finished by
EMPLOYEES
Employees not having their Finding out about how many boxes
belongings ready for the movers each employee needs to move.
Ordering spares
3 Employees not being able to Splitting the department by
effectively work on current projects employees that typically work
together and moving them at the
same time in groups
CLIENT/CUSTOMER/GOVERNMENT BODIES
Registration details not updated Making sure there are precautions
5 causing delay to responses taken in order to make sure that the
customer base is affected least as
possible
Legend:
 The colours reflected in the Stakeholder ID column refer to the risk rating before mitigation
 The colours are represented in Figure 8, p. 18
Table 9 - High Level Risk Plan & Mitigation Strategy

16
2.3.2.2 Evaluation & Analysis
Once the risk register has been established, it must undergo a qualitative, quantitative or combined
assessment. This type of risk analysis are two processes within the project risk management
knowledge area, in the planning process group.

Source: Adapted from https://www.izenbridge.com/blog/differentiating-quantitative-risk-analysis-and-qualitative-risk-analysis/

Figure 7 - Pictorial summary of Risk Analysis Process

Patterson & Neailey’s 2002 study (cited in Nguyen & Li 2012) found that while qualitative risk analysis
should generally be performed on all risks, for all projects, quantitative risk analysis has a more limited
use, based on the type of project, the project risks, and the availability of data to use to conduct the
quantitative analysis (Franco cited in Nguyen & Li 2012).

Table 10 below presents a summary of the differences between the 2 types of risk analyses.

Qualitative Quantitative
Risk Level Project Level
Subjective Evaluation of Probability & Impact Probabilistic Estimates of time & cost
Quick & Easy to Perform Time Consuming
No Special software or tools required May require specialised or
 Analytical Hierarchy Process mathematical/statistical tools
 Expert Judgement  Three-Point Estimations
 ICRAM-1 & AERM Models  Continuous Probability Distributions
 RM3 Model  Expected Monetary Value Analysis
 Sensitivity Analysis
 PERT Analysis
 Monte Carlo Simulation
 Event Trees
Table 10 - Differences between Qualitative vs. Quantitative Risk Analysis Methods

Once the potential risks and/or opportunities have been identified, they need to be assessed against
impact and likelihood and results can be recorded against a risk and opportunities matrix as shown in
Figure 8 below

17
 Figure 8 - Company’s Standard Risk and Opportunities Assessment Matrix

2.3.2.3 Mitigation
The risk matrix produces a risk rating which must then be subject to a mitigation measure in order to
reduce the residual risk rating/score making the risk tolerable, treatable, transferable or terminate.

2.3.2.4 Review
Effective risk management is all about following a structured process to effectively identify and assess
risks and then applying appropriate control and actions to mitigate the ill-effects. Continuous review
along every step of the project or at a pre-determined reference point is critical for all involved. It is
also important that a particular risk be assigned to an involved stakeholder in order so that it is
managed well from the beginning till end of project.

18
2.4 Quality Management Strategy
Irrespective of project size or value, quality management must always be one of the main focuses in
addition to HSE in order to provide an outcome to a high quality.

A quality management plan is then developed in the plan stage but is out of scope of this task.

2.4.1 Purpose
The company recently attained ISO accreditation for the KSA office and so a quality management
strategy will help define the required level of quality for the project and the approach to be used to
ensure the specified standard of quality is met. Project quality is applicable to both product quality
and process quality equally.

The Quality Management Strategy will include as a minimum the components as shown in Table 11
below:

What to do How to do it
1 Quality Objectives  Relocation of office to 100% planned activities
This will be one of the KPIs discussed in Section 2 of the report
2 Project Deliverables  Responsibility Matrix
Important to understand who is responsible for what and so is
presented below
 New office layouts
3 Project Processes  Procurement Process
Critical to success of this project and so is the subject of
discussion and presented below
 Change Management Process
4 Quality Standards  Checklists for tasks to be done pre-move & post-move
To monitor the quality of the move and support Item 1, a sample
is presented in Appendix C2
Table 11 - Quality Management Strategy Components

2.4.2 Project Deliverables (Responsibility Matrix)

Knowing exactly who is responsible, who is accountable, who needs to be consulted, and who must
be kept informed at every step will significantly improve the chances of project success. Murray (2018)
states that it does not matter what kind of business you are in – one employee or 100,000 – a key
element to a culture by design and a team that executes is defining what people’s roles and
subsequent responsibilities are.

Various methods exist and once again is dependent upon the size and complexity of the project. One
of the most common is a RACI matrix which is a responsibility assignment chart that maps out every
task, milestone or key decision involved in completing a project and assigns which roles are
responsible for each action item, which personnel are accountable, and, where appropriate, who
needs to be consulted or Informed.

A sample is presented in Appendix C1 which can be modified and adapted to suit this relocation
project.

19
2.4.3 Project Processes (Procurement Plan)
From the processes mentioned in item 3 (Table 11 above), the procurement process is identified as
critical to the success of the project and so is discussed further here.
2.4.3.1 Needs Analysis
a. As part of any procurement process, it is imperative that the business identify what it is that they
require from a purchased product or service, irrespective of the source. The company already has
a pre-qualified list of potential product or service providers.
b. Getting the right product is critical for the company given that it operates to stringent corporate
guidelines. Given that this would not be the first relocation project, some starting points could be
part numbers, or a prior order else a specification based on availability using identifiers such as
colour or weight.

2.4.3.2 Sourcing & Pricing Options

a. The business needs to determine where to obtain the product and must select a supplier from an
approved vendor list. As mentioned above, due to stringent guidelines, the company has no
alternative but to source the products from approved vendors and/or contractors.

2.4.3.3 Purchase Order

a. The purchase order is used to buy materials between a buyer and seller. It specifically defines the
price, specifications and terms and conditions of the product or service and any additional
obligations.

2.4.3.4 Delivery, Inspection & Payment

a. The purchase order must be kept on file for future reference usually associated with disputes.
b. The purchase order must be expedited to guarantee the timeliness of the service or materials
delivered. It becomes especially important if there are any delays. The issues most often noted
include payment dates, delivery times and work completion.
c. Three documents must match when an invoice requests payment - the invoice itself, the receiving
document and the original purchase order. The company has a strict policy related to financial
settlements and payment is made in the form of bank transfers.

2.4.3.5 Record Maintenance

a. Internal & external audits of the financial and accounting system is mandatory in order to comply
with ISO accreditations including new regulations pertinent to VAT and is done on a typical 3
monthly cycle.

From section 2.2.2 above, the identified stakeholders should be involved in the review and
implementation of the above strategy.

2.4.4 Quality Standards (Checklists)

As discussed in section 2.4.2 above, in order to clearly define roles & responsibilities, it would be
additionally helpful if every member of the project team or else an assigned project leader is given a
checklist to ensure all planned work activities are carried out and completed.

A sample that can be modified and adapted to this project is presented in Appendix C2.

20
3. Section 2
According to Gido and Clements 1999 study (cited in Koelmans 2004), project success consists of four
components namely budget (costs), schedule (time), performance (quality), and overall satisfaction.
The key to project success is the people, the project team and their organisation, the tools and
techniques used by the project team and the understanding the team has of the requirements and
agendas of the stakeholders.

When a project is pronounced a success, the judgement is usually based on some factual evidence and
so this section will address some of the many requirements for project success and how this can be
demonstrated or communicated to two of the key stakeholders, namely the business and the
employees (aka project team).

3.1 Performance Monitoring & Management

Measurement and monitoring of performance depends on the project’s objectives which should line
up with the company’s overall strategy, however, is limited by the maturity and the operating
environment. In other words, there is no universally applicable set of measures that applies to all
projects and/or companies alike.

As mentioned earlier in the report, given the size and complexity of the case project, below is a choice
for the ways to monitor and manage project performance and that the project should benchmark
against to lead to success. Some of the methods should be indexed or reviewed during and after the
project is completed to finalise the results.

3.1.1 Key Performance Indicators (KPIs)

For the JACOBS Riyadh office relocation project, key performance indicators (KPI) has been selected
to measure project performance. Chase’s 2005 study (cited in Khumalo 2008) summarises KPIs as
quantifiable measures used to indicate success and implement change if necessary and that in order
to do this accurately they must reflect what have been identified by an organisation as its critical
success factors.

Eventually, they can be used to measure an organisation's success, or lack of it. Quite often each part
of an organisation will have identified its own success factors, which will have stemmed from a
corporate strategy, and will then have developed its own key performance indicators.

3.1.1.1 Schedule/Time based

3.1.1.1.1 (SPI)
The Schedule Performance Index is the ratio of total original authorized duration versus total final
project duration. The ability to accurately forecast the schedule would help be back online with
minimal disruption to ongoing business. A ratio of +/- 5% will be fixed and can be calculated by
monitoring and updating the program against the established project baseline schedule identified in
Section 2.1.3, Figure 4.

3.1.1.1.2 Productivity
Productivity is output produced per unit of input and tells the company if they are getting their
money’s worth from the people and other inputs to the organisation. Typically, the resources have to
do with people and a straightforward way to normalise productivity measurement across
organisations is to use revenue per employee as the key metric. Dividing revenue per employee by
the average full salary per employee yields a ratio.

21
3.1.1.2 Cost based (ROI)
The return on investment can be calculated using (Net Benefits/Costs) x 100 which determines a
percentage return for every dollar invested. The key to this metric is in placing a dollar value on each
unit of data that can be collected (for e.g. disruption/loss of productivity days) and used to measure
Net Benefits (e.g. future income, increase in efficiency).

Due to confidentiality of the company financials, this exercise was done in an earlier part of this report,
refer section 1.1 and 1.2.

In order to accurately report against this KPI, ongoing costs and income will need to be tracked and
this section updated accordingly.

3.1.1.3 Scope based

Using the checklist that was mentioned in section 2.4.4 is one of the ways to measure project
performance based on the scope of work.

All the above information in section 3.1.1 confirms the principle behind that iron triangle wherein
scope, quality, time and costs are all interrelated activities and a change in one will impact the others.

22
4. Conclusion
From the high-level information and data presented above, two-way communication is key to the
overall success which includes all stakeholders. By holding regular staff meetings to keep employees
up to date on the progress of the timeline, to ensuring that all customers and vendors are informed
as soon as possible via phone calls.

One of the many ways to deal with any situation is to have a strategy and plan to deliver it. A strategy
reasons “why” while a plan investigates “how”.

Some interesting discussions between myself and the actual delivery team of this project have
happened over the last few weeks and one of the takeaways was that this project was too small to
have a detailed delivery plan.

The fact that this project was delayed by two weeks for the exact reasons that was highlighted in
project schedule critical path and risk items associated with stakeholder ID 1,2 and 4; is evidence
enough that no matter the size of the project, having a strategy and plan to support along the way is
invaluable.

This report will be presented to the REO team of the company for use as a guideline in future projects
with the recommendation that it must be adjusted to suit the size and complexity of a relocation
project.

Final recommendation to all internal stakeholders will be to ensure that updates to email signatures,
letterheads, business cards and websites are completed, to maintain continuity and ensure that no
elements slip through the cracks.

23
References
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its time to accept other success criteria’, International Journal of Project Management, 17, 6: 337-342.

Baker S., Ponniah D. & Smith S. 1998, ‘Techniques for the analysis of risk in major Projects’, Journal of
the Operational Research Society, 49: 67-572.

Carbone, T.A. & Corporation, F.S. 2004, ‘Project Risk Management Using the Project Risk FMEA’,
Engineering Management Journal, 16(4).

Cleland, D.I. 1998, Field guide to project management, John Wiley and Sons, New Jersey

DeSouza, A 2019, ‘Case Study Based Report – Implementation of ISO 9000’, unpublished writing
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Fung, A., Farn, K., & Lin, A. 2003, ‘A study on the certification of the IS management systems’,
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GIDO, J. and CLEMENTS, J.P. 1999. Successful Project Management. Ohio. South-Western College
Publishing.

Goodrich, B 2018, Qualitative Risk Analysis vs Quantitative Risk Analysis, blog, viewed 4 October 2019,
<https://www.pmlearningsolutions.com/blog/qualitative-risk-analysis-vs-quantitative-risk-analysis-
pmp-concept-1>

Iskandar, A 2016, Project Scope Change Management,

<https://www.slideshare.net/AlexIskandarPMP/project-scope-change-management>

Koelmans, R.G. 2004, ‘Project success and performance evaluation’, International Platinum
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Kotonen, T 2017, ‘Managing operational risks during warehouse relocation project’, MBA, Saimaa
University of Applied Sciences, viewed 15 September 2019,
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e=1&isAllowed=y>

Millhollan, C. 2008, ‘Scope change control: control your projects or your projects will control you!’,
Paper presented at PMI® Global Congress 2008—North America, Denver, CO. Newtown Square, PA:
Project Management Institute.

Murray, R. 2018, ‘The importance of roles and responsibilities’, viewed 1 October 2019, <
https://robert-murray.com/the-importance-of-roles-and-responsibilities/>

Nguyen, N.P. & Li, Y. 2012, ‘Critical Analysis of Risk Management and Significant Impacts of its
Application on Sichuan Post-earthquake Reconstruction Project’, Masters Strategic Project
Management, Umea School of Business, viewed 10 September 2019, <http://www.diva-
portal.se/smash/get/diva2:526218/FULLTEXT01.pdf>

9 Types of Effective Risk Management Strategies 2018, Quantum FBI, viewed 7 September 2019,
<https://quantumfbi.com/effective-risk-management-strategies/>

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Patterson, F.D. & Neailey, K. 2002, ‘A Risk Register Database System to aid the management of project
risk’, International Journal of Project Management, 19: 139-145.

PMI 2017, A Guide to the Project Management Body of Knowledge: PMBOK Guide, 6th edn, Project
Management Institute, Newtown Square

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Smith, L. W. 2000, ‘Stakeholder analysis: a pivotal practice of successful projects’, Paper presented at
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management.com/what-is-stakeholder-analysis/>

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Appendix A – Scope Change Log (Company Template)

26
Appendix B1 – Qualitative Risk Analysis (Company Template)

27
Appendix B2 – Quantitative Risk Analysis (Company Template)

28
Appendix C1 – Responsibility Matrix (Sample)
Source: https://images.template.net/wp-content/uploads/2016/03/24063740/Office-Move-Project-Plan-Inventory-Template-XLS.xls

29
30
Appendix C2 – Moving Checklist (Sample)
Source: https://www.getkisi.com/overview/office-relocation-guide

Task Responsible Other

considerations

Get estimates for various components of the move. Office

Arrange all necessary insurances for new premises. Office

Set up accounts for utilities. Office

Set up new telecoms/internet/account. Office / IT

Order new stationery. Office

Notify existing customers and suppliers of move and Office / sales &
change of address. marketing

Update website with new address and contact Office / sales &
details. marketing / IT

Layout plan (e.g. equipment, stock, seating, etc). Office

Book mail redirection. Office

Create new H&S induction to reflect new premises. Office

Create fire plan, decide on assembly points, etc. Office Speak to Fire Service

Arrange sandwich delivery, etc. Office

Existing premises

Deliver storage crates. Storage co Place order for these

Pack personal effects, desk contents, etc. Staff Allow time to sort /
dispose of anything
not needed - files,
redundant or outdated
material, etc

*Get shredder sacks

Deliver recycling containers for paper, card, etc. Waste co Place order for these

Deliver skips for large/bulky waste. Skip co Place order for these

31
Furniture/equipment/machinery/computers to be Removal co / IT
disassembled.

Pack stock, etc. Removal co

Deliver equipment/machinery/computers to new Removal co Obtain quotes,

premises. choose and book
removal co

Deliver stock to new premises. Removal co Book removal co

Skips to be removed. Skip co

Clean building. Cleaning co Book this

New premises

Building fit-out

Fit flooring. Carpet co Select and order

Unpack / install furniture, equipment, machinery, Removal co / IT Date?

computers, etc. contractor

Deliver new furniture/equipment/computers. Equipment co Select and order

these - delivery date?

Test computer network. IT contractor Allow 1 day + day

contingency

Install and test telephone system. Telecoms co Book telecoms co

Install exterior signage. Sign co Design, place order

and book installers

Unpack stock, etc. Removal co / staff

Unpack personal effects, desk contents, etc. Staff Report any faults with
phones, computers,
equipment, etc ASAP

Snagging - building, equipment, IT, phones, etc. From 30 July onwards

32