AIR-EURO – RELOCATION OF HEAD OFFICE
1. Reviewing the Project Scope
It has been decided that relocation of the Head Office must be in the Zaanstad area which is about 29 kilometers away from the Schiphol Airport. Since building rents and leasing costs are lower in Zaanstad, it is much more attractive to the company. The following requirements were outlined in the project scope.
1.1. Project Statement
Relocation of Air-Euro Head Office at Zaanstad; Location: At or near Zaanstad Area; Accommodation for: 300 persons; Number of Square Meters (Floor area): 500; must be tiled; Car park: For 400 vehicles; Rent: Around US$ 25,000 per month; Lease period: 5 years (subject to renewal on mutual…show more content… It also involves fitting the equipment. However it must be noted that if the moving task is handled by the office staff, this aspect of the relocation process would not arise.
2. Assessment of Risks
The following diagram shows a generalized risk management cycle. Risk factors that are inherent in a relocation effort should not be underestimated because underestimation often leads to aberrant cost escalation.
Figure 2.1: Risk Management Cycle Source: Pharmadirections.com, 2014
2.1. Identification of risks
The following risks have been identified in this project.
2.1.1. Damage Risk
Possible damage to property is the main risk factor that has to be taken into consideration in moving the office from the current location to a new location. Air-Euro needs to focus attention on the fact that its fax machines, filing cabinets and computers might be damaged while in transit.
2.1.2. Under or Over-budgeting Risk
The risk of under or over-budgeting is very common in a project of this nature and scope. There must be as far as possible a realistic assessment of expenditure in order to reduce the risk of under budgeting. For example though the office mover is responsible for the delivery of the equipment at the new address, in between or after the delivery proper, there can be other expenses involved. On the other hand over-budgeting is also a