Pm592 Project Management Project 1

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PM592 Project Cost and Schedule Control

Class Project 1 (Week 4)

Davis’ Bar Project

Davis H. Gray

davishgray@aol.com

Keller Graduate School of Management

DeVry University

Lincolnshire Campus

November 2011

Executive Summary/Proposal

This Project Plan is to outline the start-up of the business known as Davis’ Bar. The owner is pursuing the financing, construction, and operation of a bar in a key location in Buffalo Grove, Illinois. The bar will be located in a location which allows for easy visibility and traffic access. The owner has experience in managing a successful bar called “The Sand Castle” located in Egypt and wants to bring that experience to the United States. The owner will manage and work the primary open hours of operation supplemented by a number of part-time employees. The owners will be investing 30% ($30,000) of his own money into the project and will finance the remainder of the funds through local banks using Small Business Loans for $70,000 with a 15 year fixed term at a rate of 5%.

Project start-up costs are forecasted to be $100,000 to find a suitable location, remodel an existing building, install bar and D.J. equipment, stocking the bar, and hiring and training employees. The Owner investment will be $30,000 and will request a loan for$70,000. The Bar will need to earn approximately $1,500 per month, on average, for the next ten years to break even. The project will take 90 days from financing, construction and hiring to the Grand Opening of the bar. The schedule allows for a Total Slack of 20 days and a $20,000 cost-over run/start up and operating buffer.

Project Description

Davis’ Bar will be constructed and operated at the Southwest corner of Lake-Cook Road and Dundee Road in Buffalo Grove, Illinois. The bar will operate within the legal statues of the State of Illinois, Cook County and the Village of Buffalo Grove. The bar will offer a nice clean...