UNIVERSITY COLLEGE OF DUBLIN

Course: Bachelor of Science (BSc) in Business management/ Human Resource management.

Module: Project Management (BMGT2003L)
Assignment Title: Regency Plaza (Assignment 2 Group Project)
Class: Batch 17 (Sri Lanka)
Group Members: Nawarathne, B. K. T. C (13207459)
Bandara, L T M (13207476)
Dias K G S (13207488)
Eeshwaralingam D H (13207478)
Pallegangoda N S (13207402)
Perera C C F (13207396)
Perera K S K (13207503)
Perera W A N K (13207493)
Gamage H Radima (13207476)

Lecturer: Mr Ali Nazarpour

Submission Date: 20 | 05| 2014

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Executive Summary
Regency Plaza case study is about a project which consisting 300 Regency Plaza Hotel and 96
luxury condominiums. Kris Hodgkins was the project manager who was hired by Regency in the
spring of 2005 to manage the design, construction, and marketing of the condominium units.
As for projects first phase is the definition phase. Project management crew has defined their
objectives for design, managing constructions, managing marketing of the project which was stated
above. There was a dilemma with Millers who was a buyer. But the cost is higher to the RHG
than some other options, it is extremely important to please the Millers. In the project, great
effort has been made to maximize the quality of the condominiums.
The Regency Hotel Group (RHG) provided Hodgkins with strict targets and limited scope of
changing the project design criteria. However considering the probability of accomplishing
financial targets, Hodgkins decides to build 96 condominiums but Hodgkins had not recognized
the nature of her customers much. Hodgkins did not appear to have used, or be likely to use any
of them in order to resolve the current issues associated with the project.
As for describing risk management in Regency plaza project we used the risk management
concept. Some risk identifications were Condominium sales were slow, local economy appeared
to be weakling, complains from buyers to slow service, ,etc. And some recommendations were
stopping work on the unit and turning it over,etc.
If Hodgkins can evaluate the risks involved in each option via the risk management process, she
will be able find out the best to be implemented or come up with a new option which will help to
finish the project on time and within the budget.
As our conclusion mainly when doing a project like this, the company should mainly focus on
the quality. As the project manager we would focus on high quality for lesser price because when
selling condominiums customers search for the high quality and quality affects the outer
appearance. As a project manager should always have a contingency plan, it always reduces the
unnecessary costs and delays occur.

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Content
Chapter 01: Introduction

01

Chapter 02: Analysis of the project

03

Chapter 03: Discussion and conclusion

12

Chapter 04: Reference

13

Chapter 05: Appendix

14

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Chapter 01: Introduction

The Regency group is the owner and operator of 24 luxury hotels those are located in major
urban cities and city centers all over the world.Regency hotel group is very well know in the
world for their both emphasis on service and for the wide range of facilities that are offered at
their chain of hotels for their customers.Regency group had built lots of hotel properties in the
past but this would be their newest project that would include special amenities.
Senior management of the regency hotel groups have decided to build a new project named as
Rgency Plaza.Regency plaza project is mixed project including 300 rooms regency plaza hotel
and including 96 luxury condominiums.Regency hotel group consisits of big number of hotels all
over the world.But this project would be their first project that would include special
condominium units for their customers.This building is a 22 floor building built with steel and
concrete structures with bricks and granite facade.The first two floors would be common areas
that would use by both the condominium units owners and hotel rooms owners.The next eight
floors for hotel rooms and last 12 floors consists with condominium units.And also there would
be two levels for underground car parking which wull be provided with 300 cr spaces for both
hotel and condominium rooms owners.
Fcilities at the project would consisits with a four star restaurant,an exclusive health club,valet
parking and conceirge service.The condominium units were projected to sell for between $ 1500
000 and $ 25 00 000.
The senior management of the regency group have decided to hire Hodgkins as the project
manager for their new project inorder to manage the design,constructions and marketing of the
condominium units. The senior management at regency decided to use a fixed sum contract.
Evaluation of risk involved in the project at each area with the help of Risk Management Process
will be the best solution for them to overcome hurdels that occurs while executing the project.

The Steps are;

1. Risk Identification
identifying

dangerous

or

hazardous

situations

through

brainstorming,document

reviews,inerview,delphi techniques,SWOT analysis.

2. Risk Assessment
Categorize the risks as internal or external risks. Internal risks are those that can be
controlled. External risks are events over which you have no direct control. Examples of
internal risks are project assumptions that may be invalid and organizational risks.
3. Risk Response Development

Risk response development involves defining enhancement steps for opportunities and
responses to threats. These generally fall into three categories: Avoidance, Mitigation, and
Acceptance.
4. Risk Response Control
The method by which firms evaluate potential losses and take action to reduce or eliminate
such threats. Risk control is a technique that utilizes findings from risk assessments and
implementing changes to reduce risk in these areas-

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Chapter 02: Analysis of the Project

1. Evaluate the project definition phase of the Regency Plaza project. How do the
problems that emerged during the project relate to how the project definition phase
was managed?

Project phase, a part of the project life cycle is a grouping of project activities based on logic or
commonalities. Project phases could be sequential or overlap and generally result is completion
of major deliverables at end of the phase.
Projects are divided into four stages:
1. Definition.
2. Planning.
3. Execution.
4. Closure.
Each project stage is characterized by a distinct set of activities that take the project from its first
idea to its conclusion. Each stage is of equal importance and contributes to the overall success of
the project.
When the Regency Plaza project has been close to complete Hodgkins has appointed as project
manager for Condominium development of Regency Plaza Hotel Complex, where Hogkins need
to control the design, construction and marketing of the condominium units. However
Condominium project includes complicated discussions between other parties who involve with
project.
During the year 2005, Kelly Constructions, who chosen as the lowest bidder gave the
construction work to a few subcontractors due to the increased workload. Every subcontractor
will make a specific floor plan which shows the locations, texture, details and the accuracy of the
work. Then all the drawings will review by prime contractor, architects and engineers.
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In the millers dilemma the option to move the Millers to a different floor appears to be the best
choice available to Hodgkins. This is because it appears to have the least negative impact on
cost, time or quality. While the cost is higher to the RHG than some other options, it is
extremely important to please the Millers. The time is kept on schedule because construction can
continue on lower floors and the alterations should be approved by the time construction starts
on the Millers new unit.
And the new floor layout that has been designed was based upon the advice given by Russel
Farley.

Farley, an expert in the field of condominium marketing, recommended that the

condominiums be larger, rather than plentiful. This design also attempts to maximize the cost,
time and quality aspects of the project so that the project can be successful.
As can be seen, great effort has been made to maximize the quality of the condominiums while
maintaining acceptable levels of time and cost. This is seen as important because it will be a
large factor when customers contemplate buying one of the condominiums.

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2. Evaluate the role of the project manager (Kris Hodgkins) in the case. What skills do
you think are required to be the project manager for the Regency Condominium
Development Project? How well do you think that Kris Hodgkins meets these skill
requirements? Do you think Kris Hodgkins was a good project manager?

The Regency Plaza is a project that consists Regency Plaza Hotel and luxury Condominiums.
Kris Hodgkins was hired as the Project Manager to manage the condominium portion of the
project, which was conceptually designed before he was hired. The Regency Hotel Group (RHG)
provided Hodgkins with strict targets and limited scope of changing the project design criteria.
Russel Farley, a specialist in Condominium design and marketing, recommended to build 72
units. The Boston Redevelopment Authority also provided strict guidelines with regards to the
quantity of condominiums that could be constructed. However considering the probability of
accomplishing financial targets, Hodgkins decides to build 96 condominiums. Ignoring Farleys
advice could naturally change the advertising required for the condominiums because the market
will have been shifted in a minor way, to focus on a slightly different group of potential
customers. Hodgkins may therefore find it difficult to achieve the level of sales that is required
due to a lack of demand for the type of condominiums she has designed.
Another problem is the length of time required to make alterations to the condominiums.
Hodgkins thought that customers would not modify their condominiums much and would settle
for the original designs. This shows that Hodgkins had not recognized the nature of her
customers, because the target market for the condominiums was that of

wealthy couples,

extremely particular about details and so would be expected to make changes to the
condominium in order that it is exactly as desired. This puts the general contractor of the project
in a difficult position with regards to schedules and budgets. If the issue had been addressed
earlier then a proper framework could have been set up with adequate resources. This difference
would also have prevented the majority of complaints from customers regarding delays and slow
service.
Due to the customization option available on the condominiums, Hodgkins is required to ensure
those required changes are carried out in a satisfactory manner. This can then cause delays to
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other aspects of the project, which will incur extra costs to the general contractor. The extra costs
associated with delaying the entire project would not be costumers responsibility. As the
contact between the RHG and the general contractor was a fixed sum contract, the general
contractor would be extremely wary of committing to anything that may extend beyond their
budgets. Again this could have been set up more effectively if the scope of change had been
correctly defined and agreed at an earlier date, allowing for a more efficient use of resources and
better planning causing fewer complaints and less extra cost.
The management of the marketing aspect of the project has not been particularly successful
either. As an extra incentive and personal touch, Hodgkins allowed various fittings and fixtures
to be customised by the owners.

It was made possible for customers to redesign their

condominiums to a greater extent if they so desired and were willing to pay any extra costs. This
resulted in the problems outlined above with design and construction.
Due to the nature of the target market, Hodgkins states that she expects a lot of good advertising
to be via word of mouth. It can only work well if the content is positive and unfortunately
because of the problems mentioned above, some of the customers have started to complain. This
means that any information they provide to friends and family is likely not to be as positive as
Hodgkins would like. This is an extra consideration that she may not have realized.
It is possible to conclude that while Kris Hodgkins has had to manage a large and multi-faceted
project, she appears to have made a number of decisions that have adversely affected the success
of the project. As project manager success of the project should be the first and main priority
however even though possible solutions to the problems have been given, Hodgkins did not
appear to have used, or be likely to use any of them in order to resolve the current issues
associated with the project.

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3. Evaluate how well risk was managed in the Regency Plaza project. You should use
the four stage Risk Management framework from the module in answering this
question.

Risk Management

Following steps are show the evaluate well risk management in the Regency plaza project

Risk Identification
According to the case study the hazardous situations are,

Condominium sales were slow and local economy appeared to be weakling. The project
was behind schedule and over budget.

The frequency of changes that were taking place on the project and the cost of estimating
changes that did not go through.

Complains from buyers to slow service, bad workmanship and delayed closing.

Risk Assessment
Up to the case study the risk assessment of that, the senior management at the regency hotel
group committed to a high level of customer service and to their strategy of allowing buyers to
customize their condominium units. And willing to pay for any additional costs.

Risk Response Development

These generally fall into three categories: Avoidance, Mitigation, and Acceptance.

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Tools and Techniques for the risk response development categories under those factors:
a.

Procurement

b.

Contingency Planning

c.

Alternative Strategies

d.

Insurance

According to that step this case study shows outside sources for service of bidding process and
alternative plan for design process.
The alternative plan the project management team decided to hire the nearing completion
conceptual design details within the size, massing and exterior details of the project.
The first decision was the number, size and mix of condominium units. And the mundane
considerations such as the,

Hallways

The efficiency of the floor plans

The relationships of the room locations and the placement of windows

Mainly the project was initially target toward wealthy couples in late middle age. Because hoped
that these couples would either sell their suburban homes and move back into the city or
purchase a condominium unit a second home.
The senior management at regency decided to use a fixed sum contract for a firm commitment on
the cost of the project in which the general contractors would be paid for its cost plus a
management fee up to a fixed ceiling.
So the KDS began to develop a set of bid document. It consists with separate set of original
design drawings as well as a book of written specifications.

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Risk Response Control

Throughout the case study they make,

Preparations for construction and re schedules for the project and for each trade were
developed.

Created a comprehensive marketing and service program for the condominium units.

Finally take some options to close up the project properly. They are,

1. Make the changes and implement careful coordination.

2. Trying to push through the changes and minimize the amount of words that would have
to be ripped out
3. Hire a small general contractors to come in and finish out the unit before the closing
4. Stopping work on the unit and turning it over
5. Move for different unit
So those step evaluated to implement changes to reduce risk in this areas.

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4. Given the situation that Kris Hodgkins finds herself with the Millers at the end of
the case, evaluate all of the options available to her and recommend the course of
action your group thinks she should take?

Millers have decided to buy a condominium at the Regency Plaza to use it as an apartment when
they were in town and for entertaining business and personal friends. Since its important for
them to have the unit well laid out and beautifully decorated, Millers have agreed to pay
$1,500,000 for the unit and have planned to spend $ 200,000 for architectural changes and
$75,000 to $150,000 to furniture and furnishing each room.
Regency Plaza had to delay closings of condominium by two months due to both the number and
frequency of changes that were taking place in the project time to time. Millers also had received
some expensive invoices regarding minor changes done in the unit which made them feel
unhappy and to wonder whether they have done a mistake.
Kris Hodkins, the project manager for the condominium development at the Regency Plaza have
five options in order to overcome this situation.
1) Tell Millers that it is too late to modify or make the unit according to their requirements.
Regency Plaza coul`d make the changes themselves after they closed on the unit.
2) Minimize the amount of work that would have to be ripped out by trying to push through
the changes as Millers will not further commit to changes until they know the cost
involve.
3) Hire a small general contractor to finish out the unit before the closing date. Many pitfalls
could be generated as it is difficult to manage two general contractors at once.
4) Stop the work on the unit and give an empty shell for Millers to get completed by
themselves as they prefer. This option creates several problems legal wise and
organization wise.
5) Shift Millers to another unit on a higher floor where the interior work had not yet started.
At a glance this option seems to be very easy but in practice it takes more time and
budget to conduct this option.
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As a team by further analysis on the entire project and the five options, we were able to come up
with a method to be used for achieving their specific goal. Evaluation of risk involved in the
project at each area with the help of Risk Management Process will be the best solution for them.

In order to identify the risk Hodgkins can analyze the project and generate a list of possible risks.
Risk Breakdown Structure, risk profiling are some tools that she can used to identify the risk.
Secondly asses the risk in terms of severity of impact, likelihood of occurring and controllability
using tool like Risk assessment matrix, FMEA and Risk severity matrix.
Most importantly after the risk is identified and assessed a decision must be made concerning
which risk response, mitigating risk, avoiding risk, transferring risk and retaining risk would be
appropriate for the specific risk event. And finally monitor whether the situation has changed or
whether new risks have emerged.
So if she can evaluate the risks involved in each option via the risk management process, she will
be able find out the best to be implemented or come up with a new option which will help to
finish the project on time and within the budget.

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Chapter 03: Discussion and Conclusions

As a group we think, if we were the project manager we would firstly identify the target niche
market since the country is facing with economic crisis and people are more money conscious
than earlier. So our target audience for condominiums would be the mid-range. Before designing
the condominiums we would have identified our target customers and based on their needs /
requirements we could have start designing accordingly.
Target customers needs could be identified through a small research. Therefore the company
can highly reach to the success. We would have highly stuck to the original design than changing
it over the time because it incurs a high cost and it waste the time and effort of man power.
Coordination and communication is more important when doing a mega project like this.
Therefore we would have maintained it with all the parties to minimize the irresponsible work
practices which will affect the overall project quality.
Especially when doing a project like this, the company should mainly focus on the quality. As
the project manager we would focus on high quality for lesser price because when selling
condominiums customers search for the high quality and quality affects the outer appearance. As
a project manager should always have a contingency plan, it always reduce the unnecessary costs
and delays occur.

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Chapter 04: References

Katie Stricker, The five stages of a project,

http://management.about.com/od/projectmanagement/a/Five-Stages-of-aProject.htm, 17/05/2014.

Katie Stricker, The critical project management terms to know,

http://management.about.com/od/projectmanagement/a/scope-assumptionsrisk.htm, 16/05/2014.

Mark T. Edmead, Understanding the risk management process, May

2007, http://www.theiia.org/intAuditor/itaudit/archives/2007/may/understandingthe-risk-management-process/, 24/04/2014.

Robert Tusler, Project risk management principles, 1996,

http://www.netcomuk.co.uk/~rtusler/project/principl.html, 16/05/2014.

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Appendix 01: Team Contributory Form

Index Number

Name

13207459

Nawarathne B K T C

Contribution

Editing and helping

with the answers

13207476

Bandara L. T. M

Analyzing and answering

the first question

13207488

Dias K G S

Making the introduction

13207402

Pallegangoda N S

Making the discussion

and conclusion

13207396

Perera C C F

Analyzing and answering

the third question

13207503

Perera K S Kaushalya

Making the discussion

and conclusion

13207493

Perera W A N K

Analyzing and answering

the second question

13207478

Eeshwaralingam D H

Analyzing and answering

the fourth question

13207476

Gamage H Randima

Analyze all the parts of

the project and writing the
executive summary

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