Major challenges facing Regency Plaza
In project management, Kris Hodgkins was aware of time of the essences. The major challenges that the Regency Plaza faced included scheduling. Apparently, due to the dwindling local economy, the sales of condominium were very slow and, consequently, the project was behind the schedule. In addition, due to the unpredicted slow sales and a weak economy, the project’s budget kept on changing.
The number and frequency of changes that were happening as the project went on were a major challenge to the project manager. As a result, the cost of the project was increasing due to the changes caused by the cost of the estimation of the changes that took place. In project management, slight changes in the project may lead to a great cost.
Major challenges facing Millers’ unit
On the hand, the Millers were struggling to understand the high prices they had to pay for minor services in their condominium at the Regency Plaza. When purchasing the apartment, the closing date was fixed at 1st of June, 2007. Due to the project’s slow pace, the Regency Plaza changed the closing date from 1st of June to 1st of August the same year. The Millers were skeptic about the company’s ability to finish the work by the deadline considering that for the last two months, very little had been done on the apartment. In addition to the scheduling challenge, the Millers were also facing a cost challenge. The Regency Plaza was increasingly over charging extra service offered.
It was agreed that if a customer purchasing a unit in the plaza wanted some customized changes made, he or she was to bear the extra cost. However, the Millers found the extra charges by the Regency Plaza sales team to be exorbitant. For instance, they were concerned that the changes in a simple kitchen cabinet cost them $1000. The price for an additional two wall outlet was $500. The Millers had the same outlets made in their Manchester home and the cost was significantly lower. Clearly, overpricing and delays were the major challenges for the Millers.
Root causes of Millers’ challenges
The Miller’s apartment was meant to be a luxury one. However, the contractors seemed to be more preoccupied with the schedule, speed and efficiency of the project rather than its quality. The contractor was not concerned that the apartment was to last for years, therefore, it needed a lasting finishing. The delays and frustrations that the Millers faced were as a result of the long processes of getting quotes
Solution to these challenges
The Millers should have just bought the apartment as it was designed. Changing the design of the apartment to fit their needs was the main issue creating the loopholes for extra charges. In addition, if the Millers had not committed themselves in the purchase of the apartment with a down payment, it would have been easy for them to pull out. The agreement of purchase should have included the point regarding how the contractors would compensate the clients for delays and other eventualities.
The most desirable options for Millers’ unit
Further delays on the project would cost more. In case the client decides to retain the apartment without the changes, the cost of estimations would be incurred by the contractor. For this reason, the best option for Hodgkins was to hire a small group of contractors to finish up the unit before the closing date.