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Project: Selling a house

[Submitted to]
Tanjila Hossain
Assistant Professor
Faculty of Business Studies
Accounting and Information Systems

[Submitted by]

Jannati Akter 1658

Sumaiya Binte Kader 1659
Nishat Tasnim 1662
Khandker Redwan Hasan 1678
Sayed Ashiqur Rahman 1697
8th Batch

Date of Submission: 21 August 2021

Course: FNB 404- Project Management

Department of Finance & Banking

Faculty of Business Studies
Jahangirnagar University
Savar, Dhaka-1342.
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TABLE OF CONTENTS
1. Introduction........................................................................................................................1
2. Scope Statement.................................................................................................................1
3. Priority Matrix....................................................................................................................2
4. WBS Structure...................................................................................................................4
5. Responsibility Matrix.........................................................................................................5
6. Project Communication Plan..............................................................................................6
7. Cost Estimation..................................................................................................................7
8. Managing the Risk.............................................................................................................8
8.1 Risk Identification.......................................................................................................8
8.1.1 Risk Breakdown Structure...................................................................................8
8.1.2 Risk Profile...........................................................................................................9
8.2 Risk Assessment........................................................................................................10
8.3 Risk Response...........................................................................................................11
9 Project Closure.................................................................................................................11
10 Limitations and Recommendations..................................................................................13
11 Conclusion........................................................................................................................13

Table of Figures
Figure 1: Priority Matrix of the Project......................................................................................3
Figure 2: WBS of Selling a flat..................................................................................................4
Figure 3: Responsibility Matrix.................................................................................................6
Figure 4: Project Communication Plan......................................................................................7
Figure 5: Cost Estimation...........................................................................................................8
Figure 6: Risk Breakdown Structure..........................................................................................9
Figure 7: Risk Profile...............................................................................................................10
Figure 8: Impact Scales of Risk...............................................................................................10
Figure 9: Wrap-up Closure Checklist......................................................................................12
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1. INTRODUCTION
In the simplest term, project management means the combination of stages such as planning,
initiation, execution, monitoring, and closing with the specific use of knowledge, skills, tools,
and techniques to deliver a certain task, event, or duty to the designated people. Project
denotes a one-time task that is short-term in longevity. To execute a project the combination
of personnel, finances, technology, and intellectual property. Though project management is
often associated with the engineering and construction, healthcare, and information
technology industry with a complex set of components that are determined to be executed in
a certain period, a project manager who is in charge of completing the project performs the
same job by coordinating the resources with proper planning to reach the goal and objective
of the project. A project can be of any kind as long as it is designed to be executed in a short
time and have the purpose to create value and deliver to the last resort. The assessment
intends to illustrate a project of selling a house. In this assessment, the project is a portrayal
of a seller who has just been handed over a few of his flats from a real estate company and
wishes to sell one of them to the interested buyer at a justifiable price. The paper will display
how a seller can sell a flat implementing the project management stages including initiation
of the project, planning, and wrapping up at the end.

2. SCOPE STATEMENT
Project Objective
To sell a readymade flat recent-delivered by a real estate company within the next six months
at a cost of Tk. 1.5 crore situated at Uttara, Dhaka-1230.

Deliverables
 Handover from the real estate company.
 Proper valuation of the flat’s worth
 Marketing the flat on the online platform with the help of the agent.
 Receiving and negotiating the offers.
 Handing over the flat to the finalized buyer.

Milestones
 Construction began on January 8, 2018.
 Finished flat April 7, 2021.
 Flat handover held on June 5, 2021.
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 Flat sold to the customer on August 10, 2021.

Technical Requirements
 The real estate agent will be well-paid according to the contract.
 The seller will bear the expense of marketing.
 Proper valuation of the flat’s worth will be done with an expert’s help.
 The terms and conditions will be mentioned in the agreement.
 The buyer must purchase the flat after proceeding with proper inspection.
 The seller of the flat will lose his right once the flat is sold.

Limits and Exclusions

 The building is built according to the original blueprint developed by the architect of
the real estate company.
 The buyer can customize the flat by an interior designer after it is sold.
 The ready flat is prewired for air conditioning.
 The owner of the flat is not responsible for the overall outlook of the ready flat.
 The calculation of the flat price has been calculated and can be negotiated with prior
choices.

Customer Review
Mr. Afsar and Ms. Raisa Habib.

3. PRIORITY MATRIX
A project priority matrix is developed for eliminating the confusion that arises in a project. It
helps to prioritize the unclear issues when multiple criteria exist to reach any conclusion.
Figure 1 below displays the project priority matrix of selling a house. It intends to examine
which criterion of the project is constrained, enhanced, and accepted.
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Figure 1: Priority Matrix of the Project

Time
The owner of the flat intends to sell it at a determined price to the interested buyer. The flat’s
worth is evaluated by conducting market research with the help of a real estate agent. So,
there is hardly any doubt that determined price is not fair. Thus, it will be beneficial to the
owner of the price is sold as soon as possible. We have already mentioned the price of the flat
that is Tk. 1.5 crore. The value of the price will decrease as time passes by. If the owner
intends to keep the price up, he might have to go through the worth valuation process again
and again which is time and money consuming. So, it is essential for the owner or seller of
the flat that the flat is sold quickly, and hence, he must focus on the marketing of the
property.

Performance
No one will be interested in buying a property if the condition is not well and has no scope
for further development. The flat happens to be built with professional design and great
materials, there is no doubt that the outlook is top-notch. When it comes to future
performance, the real estate company developed the property meets the regulations of
RAJUK. The flat comes with proper facilitation of necessities and luxury. The flat possesses
future scope of development or renovation and comes with the opportunity for the user to
increase the beautification when it is sold. Therefore, the scope or performance of the flat can
be enhanced.
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Cost
Nothing comes as free, not even launching a project along with finishing the same. To sell a
flat or a house, the owner or seller of the property must take responsibility for some costs. He
must hire a real estate agent to help him go through the procedure of selling the desired
property. The real estate agent might come with the real estate company when the owner
handed over his land or the property in the first place. The agent will execute what needs to
be done in exchange for fees according to the agreement with the seller. Again, the seller will
also be responsible for the marketing expense and other legal paperwork expenses. Thus, the
costs regarding the project happen to be determined on the agreement, the cost will be
accepted.

4. WBS STRUCTURE
As the scope and deliverables have been identified already in the scope statement, the
project’s further responsibilities can be divided into several smaller work elements. It then
builds a hierarchical process of executing the project and this hierarchical outcome is called
the Work Breakdown Structure, in short WBS.

Figure 2: WBS of Selling a flat

Figure 2 shows a simplified WBS for selling a flat. At the top of the chart, level 1 is the
project’s finished item, selling a ready flat. The sub deliverables levels below level 1 indicate
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further decomposition of work. Level 2 of the figure represents four major deliverables-
acquiring the flat from real estate, finding the market value of the flat, marketing the flat, and
closing escrow. At level 3, each major deliverable connects to some sub deliverables. Such as
acquiring the flat from real estate involves three works, clearance of payment, registration of
sale deed, and final handover from the real estate company. Likewise, to find the worth value
of the flat, the seller must consult with the real estate agent and calculate the value by
conducting market research. Then it comes to marketing and this can be done in two ways.
The seller can click high-quality pictures and put them on property websites such as
bikroy.com and the other hand the agent can go on with his market campaign of finding
interested buyers. There are other two deliverables, receiving offers and closing the deal
come under the closing escrow. These two deliverables contain some sub deliverables. The
interested buyers will offer their interest to the seller directly or through the agent. The
enthusiast customers will be taken on a home tour and if positive, they must enter into a
negotiation of the price and will reach a conclusion. There might be multiples offers and
these finishing tasks can go on. When the decision is finalized, the parties will prepare the
agreement with terms and conditions. When the buyer puts his final signature on the papers,
the seller hands over the flat to the destined owner.

5. RESPONSIBILITY MATRIX
Previously we have carried out to recognize how the project of selling a flat should be
executed. But any of it does not elaborate which party is responsible for which
responsibilities. Hence, the tool termed as Responsibility Matrix is sometimes called a linear
responsibility chart. The tool summarizes the tasks to be accomplished and who is
responsible for what on a project. The chart enlists all the project activities and the
participants responsible for each activity.

Task Seller Real Estate Buyer Real

Agent Estate
Construction of the flat RE
Handing over the ready flat to the seller RE
Consult the real estate agent S
Finding the worth of the flat A
Clicking high-quality pictures of the flat S A
Putting an advertisement on the websites S A
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and social media marketplace

Showing the home to the interested buyers A
Receiving multiple offers S A
Negotiating the determined price S B
Making a full-price counter offer S
Preparing the agreement S A B
Handing over the flat to the buyer S B

Figure 3: Responsibility Matrix

Figure 3 illustrates an RM for selling a flat. In this matrix, the RE means the real estate
company that is provided with the land by the owner of the land and responsible for
improvements on the land. At the end of developing the building, the RE hands over the
designated flats to the owner or seller. The S is introduced as Seller, the owner of the flat who
is willing to sell the flat at a profitable and reasonable price. The S is responsible for
coordinating the efforts of other parties and making sure that the flat is sold. The A represents
the real estate agent, comes along with the real estate company, and can be hired
independently by the seller who is willing to sell his property. He is responsible for carrying
out the assigned tasks appointed by the seller such as calculating the property value, finding
potential buyers, putting the flat on market with ads, showing the flat, assisting to prepare the
agreement, etc. The B denotes the buyer who is responsible for purchasing the desired flat
offered by the seller. The B is also responsible for some other tasks mentioned in the matrix
other than buying the flat.

6. PROJECT COMMUNICATION PLAN

Every project might result in vain if the communication among the parties is poor. Once the
project deliverables are clearly defined and responsibilities are appointed accordingly,
communication among the involved parties becomes essential as poor communication can
create many confusions and might delay the project, even result might be project failure.
Thus, a communication plan for selling a flat is developed so that there remains no confusion
among the parties and effective communication is established. It is the job of the seller to be
solely responsible for the project to carry out the project communication plan and act
accordingly to ensure that the parties have sufficient information to perform their jobs
effectively.
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What Information Target When? Method of Provider

Audience Communication
Property Handover Seller When needed Meeting Real Estate
Flat Price Valuation Seller When needed Meeting Agent
Marketing Status Email and
Buyers Daily Seller
Telecommunication
Home Tour Buyers When needed Meeting Agent
Agent Update Email and
Seller Weekly Agent
Telecommunication
Scheduled Meeting Agent Monthly Meeting Seller
Status Report Seller Weekly Meeting Agent
Agreement status End of the
Buyer Meeting Seller
contract
Final handover Buyer When needed Meeting Seller

Figure 4: Project Communication Plan

The seller prepares the communication plan that carries the titles of the matrix representing
the purpose of serving the objective:

 What Information: The information necessary to be collected.

 Target Audience: To whom the information will be delivered.
 When: The time the information will be provided.
 Method of Communication: Methods to be used to collect and preserve the
information.
 Provider: The person who will provide the information.

7. COST ESTIMATION
Cost, time, and budget estimates are the lifeblood of project management; they serve as a
benchmark for comparing real to planned outcomes throughout the project's lifespan. The
main input for assessing deviations and taking remedial action in project status reports is
trustworthy estimations.

Here is the approximate estimation of cost for this project:

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Total project cost

tk 200000

Acquiring the flat from Finding the Marketing the

Closing escrow
real estate market value flat
tk 80000
tk 40000 tk 20000 tk 60000

Registration of Consult the real Receiving and

Advertisement
sale deed estate agent accepting the offer
tk 40000
tk 30000 tk 10000 tk 30000

Conducting a Agent's market

Final handover Closing the deal
market research campaign
tk 10000 tk 50000
tk 10000 tk 20000

Figure 5: Cost Estimation

8. MANAGING THE RISK

The risk management of a project can be classified into different segments. All are discussed
in accordance with the project.

8.1 Risk Identification

8.1.1 Risk Breakdown Structure

We have used risk breakdown structures (RBSs) in conjunction with work breakdown
structures (WBSs) to help management teams identify and eventually analyze risks.
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Selling a house

Project
Technical External Organizational
Management

Subcontractors Project
Requirements Estimating
and suppliers dependecies

Technology Regulatory Resources Planning

Complexity and
Market Funding Controlling
interfaces

Performance and
Customer Prioritization Communication
reliability

Quality Weather

Figure 6: Risk Breakdown Structure

8.1.2 Risk Profile

A risk profile is another useful tool. A risk profile is a list of questions that address traditional
areas of uncertainty on a project.

Issues Risk associated

Technical Are the requirements stable?
requirements
Does the project design depend on unrealistic or optimistic
Design
assumptions?
Is the development process supported by a compatible set of
Development
procedures, methods, and tools?
Schedule Is the schedule constructed properly?
Budget How reliable are the cost estimates?
Management Do people know who has authority for what?
Clients Does the potential client understand what it will take to complete
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the project?
Contractors Are there any ambiguities in contractor task definitions?

Figure 7: Risk Profile

8.2 Risk Assessment

Not all of these risks deserve attention. Some are trivial and can be ignored, while others pose
serious threats to the welfare of the project. Managers have to develop methods for sifting
through the list of risks, eliminating inconsequential or redundant ones, and stratifying
worthy ones in terms of importance and need for attention.

Here is a demonstration of how risks are associated with the objectives of this project:

Relative or numerical scale

Project 1 2 3 4 5
objective Very low Low Moderate High Very high
Cost Insignificant < 10% cost 10–20% cost 20–40% cost > 40% cost
cost increase increase increase increase increase
Time Insignificant < 5%-time 5–10% time 10–20% time > 20% time
time increase increase increase increase increase
Scope Scope Minor areas Major areas Scope Project end
decrease of scope of scope reduction item is
barely affected affected unacceptable effectively
noticeable to sponsor useless
Quality Quality Only very Quality Quality Project end
degradation demanding reduction reduction item is
is barely applications requires unacceptable effectively
noticeable are affected sponsor to sponsor useless
approval

Figure 8: Impact Scales of Risk

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8.3 Risk Response

When a risk event is identified and assessed, a decision must be made concerning which
response is appropriate for the specific event. Responses to risk can be classified as
mitigating, avoiding, transferring, or retaining.

Mitigating Risk
Reducing risk is usually the first alternative considered. There are two strategies for
mitigating risk: (1) the project manager can come up with strategies that could reduce the
likelihood that the event will occur and/or (2) reduce the impact that the adverse event would
have on the project.

Avoiding Risk
Risk avoidance is changing the project plan to eliminate the risk or condition. Although it is
impossible to eliminate all risk events, some specific risks may be avoided before you launch
the project. For example, advertising through real estate agent instead of experimental
technology can eliminate technical failure.

Accept Risk
Some risks are so large it is not feasible to consider transferring or reducing the event like
natural calamity or market crash. The project owner assumes the risk because the chance of
such an event occurring is slim. In other cases, risks identified in the budget reserve can
simply be absorbed if they materialize.

9 PROJECT CLOSURE
The three major deliverables for project closure are described below:

1. Wrapping up the project

The final step is to guarantee that the customer approves and accepts the project. Shutting
accounts, paying bills, reassigning equipment and employees, seeking new opportunities
for project workers, closing facilities, and completing the final report are all part of the
wrap-up process. Checklists are frequently used to ensure that chores are not forgotten.
The checklist of project closure is given below:
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Task Yes/ No

Completed any outstanding tasks Yes

Completed any pending deliverables Yes

Identified and documented all outstanding issues Yes

Assigned unresolved issues to relevant resources Yes

Achieved all milestones of the project No

Obtained Project Sign-Off Yes

Paid all invoices Yes

Held lessons learned meeting with the team Yes

Communicated project’s closure with the stakeholders No

Gathered all project metrics No

Archived information in the project repository Yes

Stored all hard copies in designated areas Yes

Released project team Yes

Closed the project formally Yes

Celebrated success! No

Figure 9: Wrap-up Closure Checklist

2. Project audit

This project of selling a house was audited by Ahmed Khan & Co. They included causal
analysis and thorough retrospectives which identify lessons learned. They ensured the
execution of all projected tasks within the budget and abiding by all the regulations.

3. Evaluation of performance and management of the project

Finally, the whole procedure of selling the property is evaluated thoroughly by the seller
himself. The procedure was found satisfactory. Though there existed some pending tasks,
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the seller along with the agent carried out the rest of it carefully hereon. The buyers both
were happy with the purchase and to get flat within the predicted time frame.

10 LIMITATIONS AND RECOMMENDATIONS

 It is appreciated to keep in touch with the former and current clients and maintain a
professional relationship with them.
 Some milestones were not achieved such as – Flat handover which was scheduled on
June 5, 2021, was postponed to June 23, 2021. So, this kind of delay must be avoided
in the upcoming projects.
 All the contents of the project closure checklist were not met. It is recommended that
all the team members of this project become more diligent about their respective
duties.
 We all should take lessons from this project and make sure the setbacks are dealt with
more professionalism and due care in the future.

11 CONCLUSION
In the conclusion, it can be said that though the execution of a project involves many stages,
possible stages have been implemented to carry out the project of selling a house. It can be
assured that by following those stages thoroughly one by one, selling a flat or house, or
property can be a successful project as it involves the stages regarding implementation of the
project along with risk factors that can arise and should be kept in proper attention.

As we have mentioned earlier a project can be of different types belonging to various

industries, the initiation, planning, execution, and closure are almost the same as the project
manager’s responsibilities do not vary from industry to industry. Though the project we have
worked on does not fall under any specific industry, mostly an unprofessional project, the
project implementation stages have been properly considered so that the project does not fall
in vain.