Table of Contents Project Objective Rationale for Project Stakeholders Analysis Statement of Work: Risk Assessment Timeline Scope Statement Development WBS Structure WBS Dictionary Scope Baseline Maintenance Scope Change Deliverable Acceptance Scope and Requirements Integration Schedule Methodology Schedule Tools Schedule Reporting and Format Process Management Activity identification Activity sequencing Estimating resources Estimating effort and duration Schedule Reduction Rules for Performance Measurement Cost Reporting and Format Project Estimate Bottom-Up and Expert Judgement Approach Updating, monitoring and controlling Labor Outsourced Services Inspections and Permits Contingencies Earned Value Analysis and Report Appendix Exhibit 1. Budget chart Exhibit 2 Network Diagram Exhibit 3 Outsourcing Contract Exhibit 4 PERT Analysis Exhibit 5 Status Reporting Format Exhibit 6 EV Metrics at completion as well as time phased cashflow plan Exhibit 7 Closeout Checklist Exhibit 8 Project Flow Gantt Chart Exhibit 9 Project Schedule Exhibit 10 Resource Loading Exhibit 11 Crashed Schedule References Project Objective This project will transition the SMS LAB Engineering helicopter production line from its current location in Barstow, CA to a newer and more centralized location, just south collocated with a local regional airport in Aerial Acres, CA. The move will be completed in 6 weeks (42 calendar days), safely and with a cost not to exceed $1.1 million. Rationale for Project There is a business need to move the helicopter production line from its current facility that is 50 miles from the flight test center to a newer location more centralized to the overall organization’s operations. Once the new location is operational there will be a realized savings in lease costs, reduced risk, and reduced transportation costs of moving the helicopters to the flight test center. Currently the lease for the building where the production line is located is ending and the organization has decided to not renew due to budgetary constraints and have opted to centralize operations. Stakeholders Analysis The stakeholders that are involved with the movement of the helicopter production line from the Barstow facility to the new Aerial Acres facility are spread amongst the entire company. The stakeholders will be evaluated and classified using a power/influence grid method. It is important to be able to keep all participant levels of the project informed and with this grid evaluation, status updates and meetings can be tailored to the requirements of that specific group of stakeholders. As depicted in the grid evaluation there are four main groups of stakeholders. All have different levels of power and participation/influence over the execution and overall outcome of the project. Upper management has high power but not as much influence as the middle managers because the middle managers will be actually working hands on with the project move while upp ...

1. Table of Contents
Project Objective
Rationale for Project
Stakeholders Analysis
Statement of Work:
Risk Assessment
Timeline
Scope Statement Development
WBS Structure
WBS Dictionary
Scope Baseline Maintenance
Scope Change
Deliverable Acceptance
Scope and Requirements Integration
Schedule Methodology
Schedule Tools
Schedule Reporting and Format
Process Management
Activity identification
Activity sequencing
Estimating resources
Estimating effort and duration
Schedule Reduction
Rules for Performance Measurement
Cost Reporting and Format
Project Estimate Bottom-Up and Expert Judgement Approach
Updating, monitoring and controlling
Labor
Outsourced Services
Inspections and Permits

2. Contingencies
Earned Value Analysis and Report
Appendix
Exhibit 1. Budget chart
Exhibit 2 Network Diagram
Exhibit 3 Outsourcing Contract
Exhibit 4 PERT Analysis
Exhibit 5 Status Reporting Format
Exhibit 6 EV Metrics at completion as well as time phased
cashflow plan
Exhibit 7 Closeout Checklist
Exhibit 8 Project Flow Gantt Chart
Exhibit 9 Project Schedule
Exhibit 10 Resource Loading
Exhibit 11 Crashed Schedule
References
Project Objective
This project will transition the SMS LAB Engineering
helicopter production line from its current location in Barstow,
CA to a newer and more centralized location, just south
collocated with a local regional airport in Aerial Acres, CA.
The move will be completed in 6 weeks (42 calendar days),
safely and with a cost not to exceed $1.1 million.
Rationale for Project
There is a business need to move the helicopter production line
from its current facility that is 50 miles from the flight test
center to a newer location more centralized to the overall
organization’s operations. Once the new location is operational
there will be a realized savings in lease costs, reduced risk, and
reduced transportation costs of moving the helicopters to the
flight test center.
Currently the lease for the building where the production line is
located is ending and the organization has decided to not renew

3. due to budgetary constraints and have opted to centralize
operations.
Stakeholders Analysis
The stakeholders that are involved with the movement of the
helicopter production line from the Barstow facility to the new
Aerial Acres facility are spread amongst the entire company.
The stakeholders will be evaluated and classified using a
power/influence grid method. It is important to be able to keep
all participant levels of the project informed and with this grid
evaluation, status updates and meetings can be tailored to the
requirements of that specific group of stakeholders.
As depicted in the grid evaluation there are four main groups of
stakeholders. All have different levels of power and
participation/influence over the execution and overall outcome
of the project. Upper management has high power but not as
much influence as the middle managers because the middle
managers will be actually working hands on with the project
move while upper management will just be given updates as the
project progresses. The hourly workers have little power about
making decisions but their participation in the project will be
high thus their influence will be high. The support staff has
little power or influence as to the outcome of the project.
Aircraft customers are not directly involved in the move but
because of delivery requirements they have a vested interest to
have the move be successful.
Project updates will be disseminated to the stakeholders weekly
in face-to-face meetings due to the close geographical location
of all parties involved. The general weekly meetings will be
kept to a brief slideshow updating the following:
· Show progress in the network diagram/Gantt chart
· Critical upcoming deliverables
· Budget and questions
Project managers will provide additional information to
stakeholders if questioned pertaining to the following as well:

4. 45
· Project status reports
· Changes in scope
· Gating decisions
· Action items
· Deliverable issues
· Team status meetings
· Accepted request changes
· Milestone reports
Statement of Work:
The project scope will achieve the following deliverables:
· Research hangars available for new location
· Develop production impact and forecasting plan
· Acquire lease ownership of new facility
· Develop floor layout plan to maximize efficiency
· Prepare office space for administrative duties
· Relocate shop equipment
· Relocate shop personnel
· Relocate office equipment
· Relocate office personnel
· Prepare hangar space for production work
· Close out work in progress if possible
· Transition all work in progress, to new facility, if unable to
close out
· Fit-up tests and Trial runs at new facility
· Start of work at new facility
· Finalization of turnover of old facility
Risk Assessment
There are a number of risks associated with a project of this
nature due to the planning and infrastructure requirements of a
helicopter production line.
· Failure to meet customer delivery schedule due to interference
relating to the move
· Risk of aircraft damage during movement from old to new
location
· Risk of damage to major tooling and work platforms during

5. move
· New facility may not have required floor plan/ infrastructure
required of the production line
· Risk of not obtaining building codes and occupancy
certifications in time so as to not impact planned production
Timeline
The production line move will be fully operational by June 26,
2017 which is six weeks from the start date.
Scope Statement Development
The scope of the project is to relocate SMS LAB Engineering
helicopter production line; to include (1) production line
equipment, (2) production line personnel, (3) management
office equipment, (4) management office personnel, and (5)
current work being fabricated from Barstow, CA to Aerial
Acres, CA within six weeks (42 calendar days) and at a cost
not to exceed $1.2M. Total delay in production schedule not to
exceed 15 business days.
WBS Structure
Below is the WBS structure for the project. Exhibit 2 in the
appendix contains the network diagram related to this WBS.
1. Facility (Major Deliverable #1)
1.1. Potential Locations
1.2. Risk assessments
1.3. Chosen Location
1.4. Lease
2. Facility Layout (Major Deliverable #2)
2.1. Development of production floorplan
2.1.1. Outline of equipment layout
2.1.1.1. Outline of build positions
2.1.1.2. Flow map of build processes
2.2. Development of office layout blueprint
3. Facility Readiness - All Permits obtained (Major
Deliverable #3)
3.1. Equipment
3.1.1. Electrical equipment
3.1.2. HVAC system

6. 3.1.3. Security system
3.1.4. Communications and network system
3.2. Operational permit
3.3. Building code inspections
3.4. Certificate of occupancy
3.5. Environmental clearance
4. Administrative department move
4.1. Office Equipment
4.2. Office Personnel
4.3. (Office) IT Network
5. Production department move
5.1. Production Equipment
5.2. Production Personnel
5.3. (Production) IT Network
6.Production at new facility (Major Deliverable #4)
6.1. First article inspections
6.2. Fit-up tests
6.3. First Run
6.4. Production evaluation
6.5. Lessons Learned
6.6. Production approved
6.7. Start of Production
7. Final Closeout old facility (Major Deliverable #5)
7.1. Restoration to acceptable conditions
7.2. Unused equipment
7.3. Property turnover and end of lease
WBS Dictionary
WBS Code
Element Name
Definition
Responsible Organizational Unit
1
Facility
Facility lease obtained
Management

7. 1.1
Potential Locations
Find three potential hangar/facility locations and define their
characteristics
Management
1.2
Risk Assessments
Review of the risks associated with each of the facilities
Management and Operations
1.3.
Chosen Location
After review of the facilities, a decision must be made on which
to select to lease
Management
1.4.
Lease
Lease is obtained for the selected facility
Management
2.
Facility Layout
Completion of all blueprints and layout plan
Management and Operations
2.1
Floor Production Plan
Development of the production facility layout
Management and Operations
2.1.1
Outline of equipment layout
Outline of equipment layout
Management and Operations
2.1.1.1
Outline of build positions
Outline of build positions completed
Operations
2.1.1.2.
Flow Map of build processes

8. Flow map of build processes completed for maximum efficiency
in production
Operations
2.2
Office Layout Blueprint
Some equipment must be outsourced for moving between
locations.
Management
3
Facility Readiness
Facility Readiness including all necessary permits having been
obtained
Operations
3.1
Equipment
Installation of all equipment
Operations
3.1.1
Electrical Equipment
All electrical equipment installed
Operations
3.1.2
HVAC system
HVAC systems installed
Operations
3.1.3
Security System
Security System installed
Operations
3.1.4
Communications and Network System
Communications and network systems installed
Operations
3.2
Operational Permit
Operational permit obtained

9. Operations
3.3
Building code inspections
Building code inspections passed
Operations
3.4
Certificate of occupancy
Certificate of occupancy obtained
Operations
3.5
Environmental Clearance
Environmental clearance received
Operations
4
Administrative department move
Completion of Administrative department move
Management and Operations
4.1
Office equipment
Relocation of office equipment
Operations
4.2
Office personnel
Relocation of office personnel
Operations
4.3
IT Network
IT verification of network and office equipment readiness
IT Staff
5
Production department move
Completion of production department move
Operations
5.1
Production Equipment
Relocation of Production Equipment including aircraft in work

10. completed
Operations
5.2
Production Personnel
Relocation of Production Personnel completed
Operations
5.3
IT Network
IT verification of network and office equipment readiness
Management and Operations
6
Production at new facility
Start of Production at new facility
Management and Operations
6.1
First article inspections
Completion any first article inspections required after moving
tooling to a new address
Operations
6.2
Fit-up tests
Fit-up test with all machinery and moving parts
Operations
6.3
First Run
First production run on test item completed
Operations
6.4
Production Evaluation
Production evaluation on test run product
Operations
6.5
Lessons Learned
Review of Lessons learned during test run
Management and Operations
6.6

11. Production Approval
Management buyoff on approval to commence commercial
production
Management
6.7
Production
Start of commercial production
Operations
7
Final Closeout of Old Facility
Final Closeout of old facility
Management
7.1
Restoration to acceptable conditions
Clean floors, Repair and repaint as necessary
Operations
7.2
Removal of Unused equipment
Removal of any unused equipment at old facility
Operations
7.3
Property turnover and end of lease
Property turnover and end of lease
Management and Operations
Scope Baseline Maintenance
· Scope will be maintained by following the WBS strictly
· Meet the 15-day delay requirement by adjusting production
schedule in advance. Contingency plan includes overtime work
to meet this requirement.
· Scope will be closely monitored, especially in the facility
readiness section where review of documents submitted for
permits is out of the team’s hands.
Scope Change
· If the six-week time frame is in jeopardy then budget increases
could be considered to facilitate meeting the time deadline.
· Float will have to be included in the timeline to account for

12. the external risk during review of documents to obtain permits.
If the float is used up then the team will have to increase costs
by working overtime in areas such as the production and office
building movement of personnel and equipment to make up for
the lost time.
Deliverable Acceptance
Major deliverables will be satisfied when:
· Facility acquisition- a new facility is under contract with a
completed risk assessment.
· Layout - a functional flow for production is laid out and with
required build positions and support staff.
· Facility readiness - all infrastructure improvements are
completed.
· Production restarts - all basic tests are complete, (every build
position is populated and runs through a full statement of work).
· Old facility close out -
· all materials and equipment are removed and floors are
cleaned.
Scope and Requirements Integration
· There is a requirement to leave the old facility due to an
expiring lease, the scope outlines how to fulfill this
requirement. Furthermore, more specific requirements are added
including movement of office, production equipment, and
personnel into the new office as well as closing and completing
the turnover of the old facility.
· There is a requirement to maintain a production schedule to
meet expectations of customers. The scope accounts for how to
meet this by defining within the WBS the tasks required.
Additionally, contingency plans are included to ensure this
requirement is met.
· The scope also mentions a not to exceed cost. This
requirement maybe sacrificed in order to meet the lead-time on
this project if it falls behind.
Schedule Methodology
Critical Chain Method would suit the project as most activities
are sequential, with a few possible parallel paths, (this could

13. include moving admin while production infrastructure is being
built or beginning production at the new facility while the old
facility is being prepped for closeout). The buffers referenced
in the PMBOK (P. 178) would be an appropriate way to manage
delays based on permitting or infrastructure improvements.
Schedule Tools
Crashing - Approving overtime as needed to make up delays
that would jeopardize customer delivery requirements.
Fast tracking - The initial schedule is primarily run in series,
but there are opportunities to run actions in parallel, (eg.
moving admin while production infrastructure is being worked
and beginning production at the new facility while the old one
is being prepped for close out). The critical feature here would
be resource availability. As an option, contracting additional
help during this phase may provide the project team with the
needed extra resources for an added cost.
Schedule Parameters
Level of Accuracy:
Units of Measure:
Control Thresholds:
+- 5% (2 workdays) deviation from activity cost estimates.
8 hour workdays,
M-F for Staff.
Admin:
$35/hour regular $52.50/ hour OT Technician:
$25/hour regular
$37.50/hour OT
A comparison of planned costs to actual costs, if the 5%
variance of the original cost baseline is reached the contingency

14. reserve fund will be activated to bring the project back on
schedule.
Schedule Reporting and Format
A summary schedule bar chart will be used to report the
progress of the project. The size of the project lends itself to
this style will make identifying bottlenecks in process more
obvious.
Process Management· Activity identification
· A comprehensive activity list will be used in identifying
specific activity attributes, to include predecessors, successors,
logical relationships, level of effort (LOE), resources required,
and list project milestones. (PMBOK, 2013, p.153)· Activity
sequencing
· The method used for activity sequencing will be by precedence
diagramming to logically relate activities as predecessors or
successors. Specifically a start to finish (SF) logical
relationship.· Estimating resources
· The expert judgement of personnel from each department
section in a Bottom-Up estimating at the work package level.·
Estimating effort and duration
· The tools and techniques for estimating activity effort and
activity duration will be based on the expert judgement of
personnel from each department section, to determine duration
in days and what the level of difficulty an activity requires,
example, Administrative personnel, will estimate how many
days will be needed to have the computers up and running for
shipping and receiving. We will also apply analogous estimates
based on similar past activities to determine schedule
durations.Schedule Reduction
One option to reduce schedule time by fast tracking would
major deliverables 2 and 3, relating to facility layout and
facility readiness respectively, to be worked by an outsourced
firm. The plan for this outsourcing is to set up an agreement
with an architectural firm that if familiar with the scope and
type of project such as moving a modern production line. The
firm chosen is JK and Associates Architects, (JKAA) due to

15. their expertise and track record in this specialty. See exhibit 3
in the appendix for a copy of the contract to be signed by JKAA
and SMS Lab. This is one example of how outsourcing on this
project would be developed. More in depth discussion of
outsourcing can be found in the Outsourced Services section.
Several techniques for schedule compression should be
considered. Those activities along the critical path will impact
the target deadline and so only those will be initially considered
for diversion of funds from the contingency reserves in the case
of crashing or fast tracking a critical path activity.
The network may be reduced by creating the following start-to-
start lags recommendations and thereby increasing the time
buffer in case of unexpected delays, it is important to note that
the lags do not affect the cost baseline, therefore it is the most
cost effective method of reducing the duration of the project
(Larson & Gray, 2014, p.319). The following lags could be
applied:
· The risk assessment team could begin 1 day after the start for
the potential locations and completed one day after al the
potential locations have been vetted.
· The outlining of the build positions, outlining of the
equipment layout, flow map for the build processes, and
development of office blueprints could begin 1 day after the
new location for the production facility is chosen.
· The office equipment and office personnel could begin on the
same day.
Furthermore crashing all weekend activities along the critical
path may be prudent to mitigate risks of delays and absorb the
time gained (Larson & Gray, 2014). The weekends will be
crashed utilizing rotating personnel shifts who will be receiving
overtime at their respective overtime rates, covered by the
contingency reserve. The recommendations will have the
impact by reducing the project to completion within 33 days. It
is important to note that this is a time-constrained project and
the the crashing and introduced lags also will increase the risk

16. of delays along the critical path; it is for this reason that the
strategic decision of crashing activities early in the schedule
will act as a time buffer in case needed. Exhibit 11 contains the
crashed schedule.
Rules for Performance Measurement
The primary objective of performance management is to assist
the project team develop a clearer understanding of how
processes of decision making or procedures contributed to
either a failure of a success in the past or the best ways in
which a possible improvement can be key for future
improvements (Taticchi, 2010).
Earned value management by percent complete will be applied
and cost control accounts will measure performance after every
major deliverable on the WBS. The cost baseline will compare
against actual costs and variance will be measured. If there is
any exceedance of the control threshold, a contingency reserve
will be utilized to compress the schedule. (PMBOK, 2013,
p.206) Project costs will not exceed $1.2 million and the
production line will be relocated at capacity in 42 calendar days
in accordance with the project scope (PMBOK, 2013, p.302)
Cost Reporting and Format
The project team fully acknowledges that through the use of
project cost reporting they will develop clearer capabilities.
Having project centered budgets, clearer planned costs, or even
the actual costs for the project will assist on project progress
updates.
The following will be used in defining the analysis of the
project:
· fiscal year
· fiscal period of the project
· the object of accounting
· type of value
· element of the cost
The project team will then have the privilege of applying each
of the individual filters and the key performance indicators
(KPI) that are derived from the collected data on the costs.

17. Project Estimate Bottom-Up and Expert Judgement Approach
The project estimates depend on the rank and file who will be
active on the work packages to get an idea of the level of effort
and resources involved in both labor hours and costs. The
estimates identified major areas of expenditures listed below to
complete the project on time and within budget:
· Labor
· Outsourced Services
· Inspections and Permits
· Contingencies
Each WBS will be evaluated and a corresponding budget amount
will be attributed. WBS’s will be evaluated under the following
constraints:
· Aggregation of costs. (Cumulative total of WBS totals)
· Analysis of the reserves (determined from managers and cost
uncertainty will be developed and be considered as part of the
overall budget)
· Judgement by the experts (The cost aggregation of the work
packages and expert judgement of departmental heads, along
with rank and file technicians will determine the cost estimates
in a Bottom-Up approach. (PMBOK, 2013, p.211))
· Historical relationships (The expert judgement of personnel in
the knowledge areas will be guidance for determining level of
effort required per activity, duration and costs)
The following will be the recommended outputs from the
process of budget development:
· Requirements for project funding.
· Necessary updates to the documents for the project.
· A proper baseline for the project.
· Baseline that is time-phased.
Updating, monitoring and controlling
The following documents will require updating to help monitor
the project status and be subject for review and approval,
(PMBOK, 2013, p.216)
· activity cost estimates
· baseline schedule

18. · baseline costs
· baseline risks
· risk register
· change requests
· change log
A change control panel made up of the project manager and
senior management will meet to monitor the expenditure of
funds. Any increase to the budget may only be approved
through the perform integrated change control process.
(PMBOK, 2013, p.99)
In the process, the anticipated key outputs include:
· Updates of the plan.
· Change to the requests, providing the reports on the progress
and the status of the project.
· Registering of the risks and any gate decisions associated.
There is an example of the status reporting format in the
appendix exhibit 4. This format addresses earned value(EV) of
the project in the form of EV metrics and an explanation and
interpretation of the data.
Labor
Labor costs for the project are estimated to be $300,000
for admin staff and $405,000 for production technicians based
on admin staff at an hourly rate of $35/hour and production
techs at a rate of $25/hour. This will account for $705,000 of
the $1.1M budget, or 64% of the budget.
Outsourced Services
· Architectural Plans & Layouts 80,000
· Subcontractors Electrical $60,000
· Subcontractors HVAC $60,000
· Subcontractors IT Communication Network $50,000
· Subcontractors Security System $40,000
· Aircraft Transportation $20,000
· Equipment Transportation $10,000
· Administrative Office Transportation $10,000
Totaling $330,000 or 30% of project costs.
Inspections and Permits

19. Analogous estimates have provided an estimation of the
various costs during the subcontractor stages of the project
along with the Inspection and Permit process.
· Deposits 20,000
· Inspections 25,000
· Permits 20,000
· Totaling $65,000 or 6% of project costs.Contingencies
Extra fund for resolving schedule conflicts through techniques
of schedule compression with fast tracking activities and or
crashing an activity, will require a fund for mitigating
unforeseen issues quickly and keeping the critical path on
schedule. Totaling $183,400 or 15% of project costs for
overtime labor costs paid at a rate of time and a half, $30/hour
average administrative rate and $37/hour for the production line
technicians. (Larson & Gray, 2014, p.133)
Earned Value Analysis and Report
At the conclusion of the project the final earned value was
calculated based on the final actual budget reports and a 100%
completion rate for the project overall. This final report is
different from the weekly status reports due to the nature of
being at the end of the project. The forecasted earned at
completion (EACf) and the percent complete index (PCIC) are
not relevant at project completion. They were replaced with
estimated time to completion (ETC), used for calculations, and
scheduling performance index (SPI). Below is the table of
calculated results:
PV
EV
AC
SV
CV
BAC
1100000
1100000
1082900

20. 0
17100
1082900
ETC
VAC
EAC
CPI
PCIB
SPI
0
17100
1082900
1.015791
1.015791
1
The cost performance index (CPI) reflects the under budget
condition by being greater than 1. This is seen in the raw data
of the actual cost (AC) being less than the planned value (PV)
and is also indicated in the percent complete index (PCIB)
being greater than 1, (this is only a condition that occurs when
the project is complete and under budget). The cost variance
(CV) and variance at completion (VAC) show that the project
came in under budget by $17,100. The SPI being equal to 1
indicates that the project was completed on schedule. Overall
this project was very well managed and was able to meet
scheduling demands as well as budget constraints.Appendix
Exhibit 1. Budget chart
Exhibit 2 Network Diagram
https://drive.google.com/open?id=0ByTM21plWOqsMzdqWjdm
XzVIMXM
Exhibit 3 Outsourcing Contract
Architect Contract Between SMS LAB Engineering Inc.
and JK and Associates Architects
This Architect Contract is made effective as of (MMM DD),

21. 2017, by and between SMS LAB Engineering Inc ("SMS LAB")
of 321 Clearlake Road, Barstow, California 92327, and JK and
Associates Architects ("JKAA") of 68 Mack Road, Santa Maria,
California 93455.
DESCRIPTION OF SERVICES. Beginning on (MMM DD),
2017, JKAA will provide to SMS LAB the Architect's services
described below and in the attached Exhibit A (collectively, the
"Services"). Architect's services shall include all architectural,
site planning, and engineering services in connection with the
shell and core design for the Project and without limiting the
generality of the foregoing, will include the following
Schematic Design Phase: Services provided by the Architect in
Schematic Design Phase of the construction include:
a. Reviewing the Project furnished by the Client
b. Ascertaining the requirements of the Project.
Design Development Phase: Services provided by Architect in
Design Development Phase of the construction include:
a. Preparing construction documents containing drawings other
documents to fix and describe the size, character of the Project
as architectural, structural, mechanical, electrical materials and
other elements based on approved Schematic Design Phase.
b. Advising Client on preliminary estimate of construction cost.
Construction Documents Phase: Services provided by Architect
in Construction Documents Phase of the construction include:
a. Preparing documents drawings setting forth the detailed
requirements based on the approved Design Development
Documents.

22. b. Advising Client on construction cost.
c. Helping Client for approval of governmental authorities.
Bidding or Negotiation Phase: Architect, following the Client's
approval of the construction documents assist the Client in
obtaining bids or negotiated proposals and assist in awarding
and preparing contracts for the project.
Construction Phase-Administration of the Construction
Contract: Architect shall provide general conditions for
construction. Architects service commences with the award of
the Contract and terminates at the issuance to the Client, of the
final certificate for payment. Architect shall not have control
over or charge of and shall not be responsible for construction
means and methods, techniques, sequences or procedures or for
safety precautions and programs in connection with work, since
they are contractor's responsibility. Architect can inspect and
reject work if not compiled with project.
ADDITIONAL SERVICES. Architect shall provide additional
services in connection with the planning and design of the
project. Project representation beyond basic services, selecting
project representatives, evaluating substitution by contractor,
providing serviced due to changes in project, revision of
documents with the approval of Client.
PAYMENT. Payment shall be made to SMS LAB Engineering
Inc., 321 Terminal Road, Aerial Acres, California 93523. SMS
LAB agrees to pay the sum of $80,000.00 as follows:
EventPayment Amount
Major Deliverable #2 $40,000.00

23. Major Deliverable #3 $40,000.00
In addition to any other right or remedy provided by law, if
SMS LAB fails to pay for the Services when due, JKAA has the
option to treat such failure to pay as a material breach of this
Contract, and may cancel this Contract and/or seek legal
remedies.
COMPENSATION FOR ADDITIONAL SERVICES. In addition
to the payments made to the Architect, Client shall pay
Architect for any additional services provided by the Architect.
CLIENT'S RESPONSIBILITIES. Client shall provide full
information regarding requirements for the project. Client shall
establish and update overall budget. Client shall furnish legal
requirements for the construction.
TERM. This Contract will terminate automatically upon
completion by JKAA of the Services required by this Contract.
WORK PRODUCT OWNERSHIP. Any copyrightable works,
ideas, discoveries, inventions, patents, products, or other
information (collectively the "Work Product") developed in
whole or in part by JKAA in connection with the Services will
be the exclusive property of SMS LAB. Upon request, JKAA
will execute all documents necessary to confirm or perfect the
exclusive ownership of SMS LAB to the Work Product.
CONFIDENTIALITY. JKAA, and its employees, agents, or
representatives will not at any time or in any manner, either
directly or indirectly, use for the personal benefit of JKAA, or
divulge, disclose, or communicate in any manner, any
information that is proprietary to SMS LAB. JKAA and its
employees, agents, and representatives will protect such
information and treat it as strictly confidential. This provision

24. will continue to be effective after the termination of this
Contract.
Upon termination of this Contract, JKAA will return to SMS
LAB all records, notes, documentation and other items that were
used, created, or controlled by JKAA during the term of this
Contract.
INDEMNIFICATION. JKAA agrees to indemnify and hold SMS
LAB harmless from all claims, losses, expenses, fees including
attorney fees, costs, and judgments that may be asserted against
SMS LAB that result from the acts or omissions of JKAA and/or
JKAA's employees, agents, or representatives.
NO MECHANIC'S LIEN. Architect shall not permit or suffer
any mechanic's lien filed by any subcontractor, Consultant,
laborer, or material vendor of Architect to remain upon the
premises of Client, provided such lien arises from the execution
of work included in this contract. Upon final payment due under
this Contract, Architect agrees, for himself and his Consultants
and subcontractors, that it will furnish to Client, upon request,
such certificate or certificates as Client may require or desire,
to the effect that no mechanic's liens or claims of Architect or
its Consultants and subcontractors have arisen or are
outstanding with respect to the Work and that there is, to the
best of the Architect's knowledge, information, and belief, no
basis for any future liens to be filed, but that if any such liens
or claims are filed, Architect will defend and hold Client
harmless against such liens.
WARRANTY. JKAA shall provide its services and meet its
obligations under this Contract in a timely and workmanlike
manner, using knowledge and recommendations for performing
the services which meet generally acceptable standards in
JKAA's community and region, and will provide a standard of
care equal to, or superior to, care used by architect's similar to

25. JKAA on similar projects.
DEFAULT. The occurrence of any of the following shall
constitute a material default under this Contract:
a. The failure to make a required payment when due.
b. The insolvency or bankruptcy of either party.
c. The subjection of any of either party's property to any
levy, seizure, general assignment for the benefit of creditors,
application or sale for or by any creditor or government agency.
d. The failure to make available or deliver the Services
in the time and manner provided for in this Contract.
REMEDIES. In addition to any and all other rights a party may
have available according to law, if a party defaults by failing to
substantially perform any provision, term or condition of this
Contract (including without limitation the failure to make a
monetary payment when due), the other party may terminate the
Contract by providing written notice to the defaulting party.
This notice shall describe with sufficient detail the nature of the
default. The party receiving such notice shall have 14 days from
the effective date of such notice to cure the default(s). Unless
waived by a party providing notice, the failure to cure the
default(s) within such time period shall result in the automatic
termination of this Contract.
FORCE MAJEURE. If performance of this Contract or any
obligation under this Contract is prevented, restricted, or
interfered with by causes beyond either party's reasonable
control ("Force Majeure"), and if the party unable to carry out
its obligations gives the other party prompt written notice of
such event, then the obligations of the party invoking this
provision shall be suspended to the extent necessary by such

26. event. The term Force Majeure shall include, without limitation,
acts of God, fire, explosion, vandalism, storm or other similar
occurrence, orders or acts of military or civil authority, or by
national emergencies, insurrections, riots, or wars, or strikes,
lock-outs, work stoppages. The excused party shall use
reasonable efforts under the circumstances to avoid or remove
such causes of non-performance and shall proceed to perform
with reasonable dispatch whenever such causes are removed or
ceased. An act or omission shall be deemed within the
reasonable control of a party if committed, omitted, or caused
by such party, or its employees, officers, agents, or affiliates.
ARBITRATION. Any controversies or disputes arising out of or
relating to this Contract shall be resolved by binding arbitration
in accordance with the then-current Commercial Arbitration
Rules of the American Arbitration Association. The parties shall
select a mutually acceptable arbitrator knowledgeable about
issues relating to the subject matter of this Contract. In the
event the parties are unable to agree to such a selection, each
party will select an arbitrator and the two arbitrators in turn
shall select a third arbitrator, all three of whom shall preside
jointly over the matter. The arbitration shall take place at a
location that is reasonably centrally located between the parties,
or otherwise mutually agreed upon by the parties. All
documents, materials, and information in the possession of each
party that are in any way relevant to the dispute shall be made
available to the other party for review and copying no later than
30 days after the notice of arbitration is served. The
arbitrator(s) shall not have the authority to modify any
provision of this Contract or to award punitive damages. The
arbitrator(s) shall have the power to issue mandatory orders and
restraint orders in connection with the arbitration. The decision
rendered by the arbitrator(s) shall be final and binding on the
parties, and judgment may be entered in conformity with the
decision in any court having jurisdiction. The agreement to
arbitration shall be specifically enforceable under the prevailing

27. arbitration law. During the continuance of any arbitration
proceeding, the parties shall continue to perform their
respective obligations under this Contract.
ENTIRE AGREEMENT. This Contract contains the entire
agreement of the parties, and there are no other promises or
conditions in any other agreement whether oral or written
concerning the subject matter of this Contract. This Contract
supersedes any prior written or oral agreements between the
parties.
SEVERABILITY. If any provision of this Contract will be held
to be invalid or unenforceable for any reason, the remaining
provisions will continue to be valid and enforceable. If a court
finds that any provision of this Contract is invalid or
unenforceable, but that by limiting such provision it would
become valid and enforceable, then such provision will be
deemed to be written, construed, and enforced as so limited.
AMENDMENT. This Contract may be modified or amended in
writing, if the writing is signed by the party obligated under the
amendment.
GOVERNING LAW. This Contract shall be construed in
accordance with the laws of the State of California.
NOTICE. Any notice or communication required or permitted
under this Contract shall be sufficiently given if delivered in
person or by certified mail, return receipt requested, to the
address set forth in the opening paragraph or to such other
address as one party may have furnished to the other in writing.
WAIVER OF CONTRACTUAL RIGHT. The failure of either
party to enforce any provision of this Contract shall not be
construed as a waiver or limitation of that party's right to
subsequently enforce and compel strict compliance with every

28. provision of this Contract.
ASSIGNMENT. Neither party may assign or transfer this
Contract without the prior written consent of the non-assigning
party, which approval shall not be unreasonably withheld.
SIGNATORIES. This Agreement shall be signed on behalf of
SMS LAB by SMS LAB Engineering Inc. Director, Director and
on behalf of JKAA by JK and Associates Contract Manager,
Manager and effective as of the date first above written.
Client:
SMS LAB Engineering Inc
By: ________________________________________
SMS LAB Engineering Inc. Director
Architect:
JK and Associates Architects
By: ________________________________________
JK and Associates Contract Manager
Exhibit 4 PERT Analysis
Exhibit 5 Status Reporting Format
Exhibit 6 EV Metrics at completion as well as time phased
cashflow plan
Exhibit 7 Closeout Checklist
ID
Task
Completed? Yes/No
Operations
1
Is all of the equipment in the new facility functioning properly

29. 2
Are there any tools/materials not unpacked or forgotten about
Management
3
Are all vendors/contractors work complete
4
Are all vendors/contractors paid
5
Have all customers been informed about the completion of the
move
Facilities
6
Is the landlord satisfied with the condition of the old facility
7
Is there any material left in the old facility
Exhibit 8 Project Flow Gantt Chart
Exhibit 9 Project Schedule
Exhibit 10 Resource Loading

30. Exhibit 11 Crashed Schedule
References
Larson, E. W. & Gray, C. F. (2014). Project Management: The
Managerial Process (Sixth Edition). New York, NY: McGraw-
Hill Education.
Write a 4 - 5 page reflection paper addressing the following
areas:
Summarize what you learned about project management.
How do you compare the theoretical with how your organization
operates?
Consider your final project.
Describe the purpose
Evaluate your team's performance and final product.