Project Application Form

Project title: Rehabilitation of the Vraja Mrii Hotel

Team members:
Lefter Ioana
Mocanu Florinela
Rducu Roberta
Stoian Andreea - tefania

A.
A.1

PROJECT OUTLINE
GENERAL INFORMATION

Duration of the project:

2 years

Title:

Rehabilitation of the Vraja Mrii Hotel

Acronym/short title (max. 25 VRM122015

characters):
Overall objectives:

The revenue of Mangalia City Hall increases with 20% by

2020.

Project goal:

The Vraja Mrii hotels profit increases with 30% by 2020.

Coordinating institution
Mangalia Town Hall
Name and position of contact Florinela Mocanu Project manager
person:
Address:
27, Frunzelor
Mangalia, Constana
Telephone/Fax:
0727.938.683
E-mail:
florinela.mocanu@pmarena.ro
Other
institutions:

participating Mangalia City Hall

Radu Cristian Mayor

Other
institutions:

participating PerfectPR
Diana Macare PR Executive

Other
institutions:

participating Hotel Vraja Mrii

Mihai Codreanu Director of Management and Marketing

Total budget:
108.380.000 RON
Grant requested from the 75.866.000 RON
World Bank:
% of total budget:
70%
Target sector(s)

Tourism

A.2

SUMMARY

1. Justification of the proposal

During the period 1960-1989 there were built 200 vacation hotels by the Communist Party in
different regions of Romania. These hotels were fully booked each season, as they were the only
available vacation hotels at that time.
Vraja Mrii hotel is one of these hotels. It was open in 1976 in Neptun seaside vacation resort and
had the capacity of receiving 200 families at once. As it was the most popular hotel of Neptun
resort, it was booked to full capacity each season.
After the fall of the communist regime, the private sector developed and numerous hotels were
open in Neptun resort. These new hotels had innovative ideas of entertainment and offered
modern, contemporary services. Meanwhile, the management of Vraja Mrii hotel didnt invest
in the modernization of the hotel or in the promotion of it. These two factors, the growing number
of private hotels and the conservative management of Vraja Mrii hotel, led to the present state of
the hotel: the quality of the hotels services declined, the number of tourists significantly
decreased and the number of employees was reduced.
Vraja Mrii hotel is one of the main revenue sources for Managalia City Hall and its economic
collapse also represents the decrease of the City Halls revenue. This led to the decision of the
Mangalia City Hall to collaborate with the management of Vraja Mrii hotel for the rehabilitation
of the hotel.
The project is aiming to rehabilitate the structure of the hotel and the design of the rooms, to
improve its present services and to also provide new facilities. The project also includes a
communication plan that will be developed by a PR agency. The project pursues to increase the
number of tourist of the Vraja Mrii hotel and to increase the number of employees from the local
community. Therefore, the overall objective of the project is to increase the revenue of Mangalia
City Hall by increasing the profit of Vraja Mrii hotel.
2. Results
1.1 The number of tourists increases by 20% during the first year.
1.2 The number of tourists increases by 20% during the next 2 years.
1.3 The number of tourists increases with another 10% by 2020.
2.1 The number of bad reviews will decrease by 60% during the first year.
2.2 The number of bad reviews will decrease by another 20% by 2020.
3. Dissemination methods
Promotion strategy development and implementation that will include:
Partnerships with travel agencies, the Education Ministry and travel bloggers.
Online campaign both on social media and travel site.
TV campaign.
Promotional packages for tourist groups.

4. Participating institutions
PR AGENCY it will develop the communication plan and it will implement it. It will assure the
presence in media of the hotel, it will organize press conferences and events when needed and it
will organize the training sessions for the employees.
MANAGEMENT TEAM it will collaborate with the PR agency for developing the
communication plan and it will also decide/ estimate the budget of the project.
DESIGN TEAM it will be responsible for the visual appeal of the hotel and also for the
efficiency of the available space.
CONSTRUCTION TEAM it will execute the rehabilitation plan developed by the design team.
5. Project Management and operational timetable
We will follow the logical track of the activities of the project to get to the final purpose:
transforming Vraja Mrii into one of the most interesting recreational hotel of the Romanian
seaside.
For this aim, the activities needed are:
STRATEGIC MARKETING. We will do a Market Research to find out the needs of the potential
customer, so that we offer the needed services and the wanted quality.
FESABILITY. We will develop a Feasibility Study and a Business Plan to gather the main
important information and also a Task Book to distinguish the required needs and the persons in
charge.
APPROVALS. We will require the necessary approvals to fulfill the legal part of the project.
PROJECTION. The projection is needed in order to point out the needed changes and also to be
able to note the evolution of the hotel after the changes are implemented
EXECUTION. The most complex part of the project and it involve the implementation of the
projection. It implies:
Construction building
Design developing
Backyard arrangement
TESTING. We will test the improvement ideas for the hotel after the execution is done.
DISSEMINATION. After the testing we will communicate the project so we will need to
disseminate the information through marketing activities:
Promotion strategy development
Promotion strategy implementation
RELEASE. The hotel is ready to be reopened.
PROJECT MANAGEMENT. Every activity is constantly managed by the person in charge of
that exact activity.

Activity chart

2016

Activity
1.
STRATEGIC
MARKETING
1.1. Market Research
2.
FESABILITY
2.1.
2.2.
2.3.
3.
4.
5.
5.1.
5.2.
5.3.
6.
7.
7.1.
7.2.
8.

Person in charge
Florinela Mocanu

2017
5

Florinela Mocanu
Andreea tefania
Stoian
Feasibility Study
Andreea tefania
Stoian
Business Plan
Andreea tefania
Stoian
Task Book
Andreea tefania
Stoian
APPROVALS
Ioana Lefter
PROJECTION
Ioana Lefter
EXECUTION
Ioana Lefter
Construction building Roberta Rducu
Design developing
Roberta Rducu
Backyard arrangement Roberta Rducu
TESTING
Roberta Rducu
DISSEMINATION
Roberta Rducu
Promotion
strategy Florinela Mocanu
development
Promotion
strategy Florinela Mocanu
implementation
RELEASE
Florinela Mocanu

9.

PROJECT
Ioana Lefter
MANAGEMENT
9.1. 1st Activity management Ioana Lefter
9.2. 2nd Activity management Ioana Lefter
9.3. 3rd Activity management Ioana Lefter
9.4. 4th Activity management Ioana Lefter
9.5. 5th Activity management Ioana Lefter
9.6. 6th
management
9.7. 7th
management
9.8 8th
management

Activity Ioana Lefter

Activity Ioana Lefter
Activity Ioana Lefter

10

11

12

13

14 15

16

17

18

B.
B.1.

PROJECT GOAL
JUSTIFICATION OF THE PROPOSAL

1. Background
Between 1960 and 1989 there were built, in various Romanian vacation resorts, 200 hotels that were
managed by the state. As private hotels were practically inexistent, these hotels were booked at full
capacity each season. In the Neptun resort there were built 7 such national hotels and all 7 hotels could
receive 2000 guests at once. One of these hotels is Vraja Mrii, the hotel we want to rehabilitate. The
hotel has 200 rooms that have the capacity to receive 200 families (approximately 400 adults plus
children).
After the fall of the communist regime, the management of the hotel was changed and the hotel begun to
be administrated by THR (Tourism, Hotels and Restaurants). The new management that didnt invest in
the renovation or the promotion of the hotel and also the high number of private hotels what were open
in Neptun resort led to a gradually decrease in the number of tourists of Vraja Mrii hotel. The
consequences of the decrease number of tourists are: a high number of layoffs and a significant decrease
in the hotels profit.
The Vraja Mrii hotel has economic potential as it is the largest hotel in Neptun resort, it is the hotel that
needs the least structural changes compared to the other existing ones and it is the only hotel from
Neptun resort that has its own restaurant. Vraja Mrii hotel is also one of the few remaining hotels that is
still open, as in 2014 the National Institute of Statistics revealed that 4 out of the 7 hotels of Neptun
resort are closed.
2. The problems addressed by the project and the means of identifying them
The revenue of Mangalia City Hall used to receive 15% from the Vraja Mrii hotel, which made the
hotel one of the main revenue resources for the City Hall. The decrease number of revenue from the
hotel is revealed by the City Hall Annual Revenue Registers. Starting with the year 2005, the revenue
amount decreased by 1% each year, the 2014 Mangalia City Hall Annual Revenue Register revealing that
the revenue received from the Vraja Mrii hotel was only 5%.
The hotels Annual Bookkeeping Reports indicate the decrease of the profit. In 2004 the hotels profit
was 80.000.000 lei and it gradually dropped each year. In 2014 the profit of the hotel was 30.000.000 lei.
At the same time, the decreased number of tourists can be observed by analyzing the hotels Annual
Check-In Reports. The last time when Vraja Mrii hotel was fully booked was August 2004. The
following years only half of the hotels rooms were booked and in 2013 only 30% of the rooms were
booked. In 2014 there was registered the lowest number of booked rooms only 20%.
In order to identify the causes of the hotels decrease number of tourists and profit, the hotels
management initiated both a qualitative and a quantitative research. There were analyzed the online
travelling forums, the online tourism blogs, the social media reviews of the hotel, the hotels impressions
book and the media coverage of the hotel from the last 10 years. The results showed that the number of
tourists reduced because of the limited services the hotel offers, the poor quality of those services, the
lack of qualified employees and the lack of promotion of the hotel.

3. The specific activities of the project

1. Strategic marketing
2. Feasibility
3. Approvals
4. Projection
5. Execution
6. Testing
7. Dissemination
8. Release
9. Project Management
4. The target population and eligibility criteria for participants
Target group: tourists, suppliers, consultants, key opinion leaders, utilities providers, bloggers, tourism
agencies
Direct beneficiaries: the hotels management and its employees, the local community
Indirect beneficiaries: the Mangalia City Hall, the local businesses
The hotels management and employees the hotels management is one of the first direct
beneficiaries of the project, as the aim of the project is to increase the profit of the hotel. By the end of
the project, it is estimated that the profit will increase with 30%, saving the hotel from insolvency. At the
same time, the 50 employees that the hotel already has will benefit from the project, as they will continue
to have a job and provide for their families.
The local community that our project involves is formed out of inhabitants from Neptun resort and from
Mangalia city. Neptun resort has 999 permanent inhabitants, out of which 300 are out of job, 150 are
retired and 200 are children. Mangalia city has a population of 36.364 inhabitants, out of which 2.000 are
unemployed, 3.000 are retired and 2.500 are children. As the hotel will need to hire 90 more employees,
the project will directly influence the local community. Also, the local community will benefit indirectly
from the project, as the revenue given to the City Hall can be invested in local development.
The Mangalia City Hall is the primary indirect beneficiary of the project, as the increase of the hotels
profit will lead to the increase of the City Halls revenue. It is estimated that, by the end of the project,
the revenue received from the Vraja Mrii hotel will increase by 20%. Therefore, the City Hall can
finance other local projects in order to develop the region, such as the local infrastructure or the
rehabilitation of the local harbor.
The local businesses are mostly formed from souvenir boutiques, clothes boutiques, food shops and
restaurants. In Neptun resort there are 7 souvenir boutiques, 5 clothes boutiques, 10 food shops and 10
restaurants. In Mangalia city the number of local businesses is larger: 20 souvenir boutiques, 70 clothes
boutiques, 120 food shops and 50 restaurants. The increased number of tourists is an indirect benefit for
local businesses, which can save their business from insolvency or can further develop their business.
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5. Incentives for completing the training program and participant obligations

Date/ Period
Participants
Information
Moderator
Month 15 of the Housekeeping Staff
Customer
care
standards, Maria
Valentin,
Project
cleaning and maintenance PerfectPR member
standards,
customer
communication,
employees
responsibilities.
Month 15 of the Restaurant
Staff: Customer
care
standards, Maria
Valentin,
Project
waiters, kitchen help, kitchen cleaning standards, PerfectPR member
chef help, chefs
customer
communication,
conflict resolution strategies,
food
quality
standards,
employees responsibilities.
Month 16 of the Reception Staff
Customer
care
standards, Maria
Valentin,
Project
customer
communication, PerfectPR member
conflict resolution strategies,
employees responsibilities.
Month 16 of the Entertainment Staff
Customer
care
standards, Maria
Valentin,
Project
entertainment
program, PerfectPR member
customer
communication,
customer
engagement,
employees responsibilities.
Month 16 of the Others: gardener, bus Customer
care
standards, Maria
Valentin,
Project
drivers, janitors,
maintenance
standards, PerfectPR member
lifeguards
employees responsibilities.
B.2.

BREAKDOWN OF RESULTS

1. General description of results

The aim of the project is to increase the profitability of the Vraja Mrii hotel. That will be
possible by providing better services and developing a marketing campaign. This way, the hotel
will attract more tourists and, most importantly, they will be better satisfied by the hotels
facilities than at the present time.
By the end of the project, the hotel will accommodate an additional 7000 tourists per year and the
number of bad reviews will be highly reduced.
2. Breakdown of results
1. Increase the number of tourists at Vraja Mrii hotel.
1.1 The number of tourists increases by 20% during the first year.
1.2 The number of tourists increases by 20% during the next 2 years.
1.3 The number of tourists increases with another 10% by 2020.
2. The tourists staying at Vraja Mrii hotel will be satisfied with the services provided.
2.1 The number of bad reviews will decrease by 60% during the first year.
2.2 The number of bad reviews will decrease by another 20% by 2020.

3. Detailed description of results

At the moment, Vraja Mrii hotel accommodates approximately 10.000 tourists every year. In the
first year, as a result of our projects approach, this number will be supplemented by another
2.000. During the next two years, the hotel will be serving an additional 6.000 compared to the
present time. By 2020, the number of tourists accommodated by the hotel will have surpassed
17.000 and it would have served a total of over 70.000 tourists since the beginning of the project.
Also, the quality of the services will change the perception of the tourists, making the hotel a
desirable place for a vacation and a good environment to work for employees. The good reviews,
in addition to the marketing campaign, will make the hotel even more popular and bring more
tourists to its chambers, creating a highly profitable and sustainable business.
These variables, both qualitative and quantitative, will insure our project with a high impact on the
population, by bringing tourists from different parts of Romania, even Europe, creating a good
image and communication throughout the country and the EU.
4. Delivery system
For the hotels management, the project will offer assistance in human resources management and
in designing and renovating the building and the surrounding area. Furthermore, it will develop
and implement a promotion strategy that will consist of: partnership with travel agencies, travel
bloggers, and the Ministry of Education, in order provide some special packages for students, an
online campaign and a TV campaign, as well as developing some attractive promotional packages
for tourists and tourists groups.
For the hotels employees, the delivery system includes two months of trainings for the staff:
customer care standards, kitchen cleaning standards, customer communication, conflict resolution
strategies, food quality standards, employees responsibilities, cleaning and maintenance
standards, customer engagement, entertainment program, maintenance standards, with a total
number of 22 trainings, grouped for each staff category.
For the local community, our project will provide 90 permanent jobs at the hotel and another
approximately 100 temporary jobs, necessary during the development of the project itself.
The Mangalia City Hall will benefit of a better image for the city, as having in its jurisdiction of a
renewed hotel, with innovative services and will receive higher revenue, according to the hotels
profit.
The local businesses will flourish, since they consist mostly of souvenir shops, clothes shops and
restaurants or food sellers. The increased number of tourists will mean more customers, therefore
higher profit.
-

B.3.

IMPACT

1. Impact on the primary target population

The hotels management aside the increased profit, the management of the hotel will have the
opportunity to innovate its operational system. Furthermore, the hotels management will be able
to continue the communication on social media and also to support the media coverage of the
hotel.
The local Community a part of the rehabilitation process of the hotel implies the need for new
workforce from the local community. Therefore, the hotel will need to hire 90 more employees: 20
waitress, 5 room chiefs, 2 chefs, 10 chef helpers, 30 housekeepers, 2 pool janitors, 6 lifeguards, 1
bus driver, 2 accountants, 2 medical assistants, 6 masseurs, 1 travel guide, 1 PR expert, 2 junior
PR. The number of employees might increase, depending on the hotels further demands.
The employees from the local community will be able to sustain their families. Furthermore, after
completing the training program, the employees will receive a competence certificate than can
help them to obtain another job.
The Mangalia City Hall the revenue collected from the Vraja Mrii hotel will be distributed to
other projects that the City Hall initiated, such as the development of the local infrastructure and
the rehabilitation of the local harbor.
The local businesses the increased number of tourists that will be accommodated by the Vraja
Mrii hotel will also help small local businesses to save their business from insolvency or can
further develop their business.
The tourists will benefit from new, improved facilities that will make their vacation more
enjoyable and relaxed.
The project Management will be able to improve their skills, to understand better the character
of such projects and to have a more experienced expertise in similar projects.

2. Project's potential transferability to other sectors and users

Community outreach
The revenue of Mangalia City Hall will increase by 20% by 2020.
The profit of Vraja Mrii hotel will increase with 30% by 2020.
There will be employed al least 90 persons from the local community each season.
b.
Systemic impact
The project will respect all legal norms in order to be able to protect the environment.
The hotel will have a recycle policy for paper, plastic and metal trash.
The food that is close to its expiration date will be given away to charity.
The hotel will plant within its garden trees that are resistant and will absorb well the CO2.
The hotels beach will be periodically cleaned.
There will be a created a special area for smoker clients.
Each room will have a fire extinguisher.
a.

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c.

Permanence
The management of the hotel will be advised to support the development of a welcoming
website.
The online tourism websites that will partner with the hotel will be constantly monitored
for assuring that they respect the protocol decided by the PR and Marketing teams of the
project.
Both online and offline tourism agencies will be updated each second month regarding the
promotional packages that the hotel offers.
The hotel management will organize periodical surveys to identify the changes that need to
be made so that the tourists will be satisfied by the facilities the hotel offers.

B.4.

DISSEMINATION

1. Strategies and initiatives to ensure that the project has the desired impact
Create promotional packages for tourist groups.
Establish a partnership with the Education Ministry which will conclude that the hotel will offer
free accommodation for one month for 40 students each season.
Create partnerships with well known travel agencies, such as ChristianTour and Portvoyage.
Online campaign both on social media and travelling forums.
TV campaign
2. Dissemination during the project
A teasing online campaign that will rise the interest of the potential customers about the
transformation of the hotel.
3. Dissemination at the end of the project
Online campaign including an official website of the hotel, an official Facebook page of the hotel
with daily posts, Facebook Ads, Google Ads.
Endorsement projects with travel bloggers that will be invited to visit the hotel and to give a
feedback on their stay.
TV campaign that will increase brand awareness among potential customers.
Nation and international travel sites presence.
Presence on brochures, catalogs and flyers of the partner travel agencies (POSM).
Presence at national tourism fairs.
C.

ORGANISATION AND MANAGEMENT OF THE PROJECT

C.1.

WORK PACKAGES
WP1: Strategic Marketing
Description identification of market opportunities, development and
implementation of the campaigns strategies, evaluation of external medium
Period first month of the project
Activities Market Research
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WP leader Florinela Mocanu

WP2: Feasibility
Description - identification of the duration of the project, the feasibility study,
identification of the costs
Period first month of the project
Activities Feasibility Study, Business Plan, Task Book
WP leader Andreea tefania Stoian
WP3: Approvals
Description risk evaluation, construction rapport, impact study
Period months 2, 3, 4, 5, 6 and 7 of the project
Activities Construction Legal Advice, Rehabilitation Legal Advice
WP leader Ioana Lefter
WP4: Projection
Description developing the buildings rehabilitation, developing the interior design,
developing the exterior design
Period months 8 and 9 of the project
Activities Geotechnical Studies, Fire Safety Study, Evaluation of the Buildings Structure
WP leader Ioana Lefter
WP5: Execution
Description employment of a constructor team, acquisition of the necessary materials,
rehabilitation of the buildings structure (walls, water pipes, electricity system) and
implementation of the developed design (paint colors, furniture, kitchen equipment,
bathroom furnish, design pieces such as paintings, flower vases)
Period months 10, 11, 12, 13, 14, 15 and 16 of the project
Activities Construction Building, Design Implementation, Backyard Arrangement
WP leader Ioana Lefter
WP6: Testing
Description testing the improvement ideas for the hotel after the execution is done
Period month 17 of the project
Activities invite a number of 20 persons to stay at the hotel for 3 days and require
feedback from them regarding the quality of the hotels services
WP leader Roberta Rducu
WP7: Dissemination
Description raising awareness, informing the community, involving the communication
team, online communication, media communication
Period month 18 of the project
Activities Promotion strategy development, Promotion strategy implementation
WP leader Roberta Rducu
WP8: Release
Description the official opening of the hotel for tourists
Period month 18 of the project
Activities Opening Event
WP leader Florinela Mocanu
WP9: Project Management
Description the organization of each activity and the distribution of team leaders for
those activities

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Period all 18 months of the project

Activities Management of the Contractor Team, Project Management Structure, Technical
Resources sstimation, Decision Committee implementation, Conflict Resolution Team,
Evaluation of all activities, Rapports, Team Work Management, Final Results Evaluation,
Quality Management of the Project, Communication Management of the Project, SWOT
analysis of the Project
WP leader Ioana Lefter
C.2.

PROJECT MANAGEMENT

1. Steering Committee
The Steering Committee is formed by experienced and capable management experts who will
guide the whole process so that will lead to a real success.
The Steering Committee has in its structure four managers:
Diana Pietreanu, vice-mayor of Mangalia.
Paul Dobrinescu, manager at Vraja Mrii hotel.
Mariana Coman, financial manager at Vraja Mrii hotel.
Adrian Marin, operational manager at Pro Team.
2. Organization and management structure
The structure will determine the percentage of responsibility of partners throughout the project,
with progressive changes that are necessary in order to avoid sudden changes in the overall
objective of the project. It will be developed the estimation of the necessary human resources for
the project, the analysis of quantitative and qualitative availability of personnel, the analysis of the
possibilities of providing human resources, establishing their insurance sources and the
development and implementation of the plan.

Sponsor

Project Management
Florinela Mocanu

Quality manager
Roberta Rducu

Crisis/financial
manager
Ioana Lefter

13

HR manager
Andreea tefania
Stoian

3. Approach and methodology

GANTT, PERT
4. Conflict resolution
Possible conflicts between the project staff will be resolved impartially, allowing parties to argue
in writing and signed logical development of actions that conflict. In light of these records it will
reveal the cause and the culprit conflict, if there is one and try to remedy them amicably. Conflict
Negotiation is an important event in the development of a risk management project. Conflict
Negotiation allows improvement, but not fully solves the situation, because it is impossible to
solve a conflict in a sustainable manner if the two opposition parties do not want this and are
determined to take concessions to solve conflicts.
The stages of negotiation to be adopted are calming conflict and easing his defining framework for
discussing the conflict, re-discuss issues objectively without final judgment or opinion
preconceived searching and highlighting common problems, looking for common interests,
reformulation in writing of the claims of each party searching together for the parties involved to
some amicable solution to reformulate their solutions and important assessment, the conclusion by
choosing a solution eventually declared provisional. Between subordinate and leader there
consultative type of resolving conflicts, the conflict must be resolved by convincing subordinate
that is not right, but existing still a discussion. If conflicts between subordinates, participatory
type, are adopted, the superior arbitrates disputes and facilitate negotiations.
5. Work package leaders
The project manager Florinela Mocanu is the results exploitation Manager, her job is to make sure
the results are accomplished
Roberta Rducu is an expert in quality management, her job is to make sure the project achieves
the results needed, but at the best quality possible, of the material resources.
Ioana Lefter is a crisis management expert and financial Manager, and her job is to make sure the
budget is not surpassed, the resources are allocated correctly and every activity has an right
financial effort.
Andreea tefania Stoian is an expert in handling human resource, her job is to make sure the
employed people have good qualification and can bring a plus to the whole activity.
6. Schedule
Approvals. First milestone is to get the approvals in the first 7 months so that we can begin the
projection in the 8th month.
Execution. We need to start the execution in month 10 so that the project will be finished on time.
Release. The release should begin no later month 18th to declare the project a success.
7. Evaluation
The final assessment includes the evaluation of the contractors duties, identify the best solutions
for future projects based on the experience gained, identifying resources for the future, taking into
account the correct assessment of those based on sufficient or insufficient means the project
conducted and identify needs for future projects.

14

8. Criteria for evaluating the success of the project

Scheduling and tracking project activities is graphs GANTT using software project management,
such as Microsoft Project Management, use of graphics resources, PERT (The program (or
project) evaluation and review technique), breakdown structure of the project, the table of
indicators for measuring the impact table project budget, table cost allocation, risk breakdown
structure of the project risk register using expert systems procedures.

9. Methods for monitoring and reporting progress

Monitoring and reporting is envisaged to mobilize resources for each task, project marketing,
expectations for the project and solution during project implementation, providing information
about the project development throughout its deployment. Take into account also adapt the design
and implementation of the project according to the expectations of potential beneficiaries,
permanent monitoring and reporting forms, identify problems, identify failures and solutions that
lead to their elimination and modification of planned results and objectives project some
achievable
10. Projects assumptions and project risks
10.1 Project assumptions
The renovation process will develop as planned
The tourism agencies will promote the hotel
People will be interested on social media
The employees will be involved and the trainings will be effective
Public figures will visit and appreciate the hotel
The outdoor activities will be appealing
The new chef will have good cooking skills
10.2 Project risks
Engineer risk: large complex constructions and rarely executed; unsatisfactory quality of
the materials
Execution risk: insufficient well qualified personal regarding the projects requests which
appear at the execution of the project; the random breakdown of the machineries; new
elements which appear in the execution of the project; the execution of the project in
different terms as the contracts.
Judiciary risk: getting the needed approvals, quality certificates and approvals from the
responsible institutions
Financial risk: unforeseen expenses, the price risk
10.3 Measures for risk management
Risk Breakdown Structure (RBS) - A hierarchically organized depiction of the identified project
risks arranged by category. The RBS helps the project manager, the risk manager, and almost any
stakeholder to understand, and therefore be able to identify and assess risk.

15

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