Libya project presentation Introduction Scope statement WBS Project plan Cost estimate and time phased budget Risk management plan Reporting project status Project closure

Introduction :Libya project is a real estate mixed use development project , As per market study Libya was the 11 fastest growing country in the world, in addition to opening of oil investment field to the foreign investors. The projects consists of :1- five star hotel ,29 story 369 key 2- serviced apartments 100 key classified as follows : 1 bedroom apartment 25 key 2- 2 bedroom apartment 50 key 3- 3 bedroom apartment 25 key 3- business center & meeting room 4- 3 office tower building 18 story , 2 podium consists of 5 restaurants ,retail area , banquet hall for 800 person ,meeting room, terrace, in/ outdoor pool ,spa and parking area . the project has definite life span of two and a half years of construction .in regard the cost of the project the land cost is$ 103 ,422,060 , construction cost $376,040,000 ,direct cost $325,976,7004 , overheads $276,811,096 .

Considering four stages , in the definition stages we set up the project structure we assigned the board member & defined their responsibilities. For the planning stage, we prepared schedules, master plan, budgets, subcontractors, due diligence, by the staff reporting to the board members. In the executing stage, construction starts, performance valuation report to be issued . in the closure stage, all resources will be released to subcontractors; evaluation to the business model will be prepared by the development manager to note lessons for prospective opportunities .

Project scope statement :1 -objectives :

To construct a mixed development of five star hotel and serviced apartments within two and a half years. The total .project cost including land + construction is approximately USD 479,462,060

2-deliverables: 1-Five start hotel 29 stories, 369 key & amenities include indoor, outdoor pool, health club & spa .2 -Serviced apartments 100 key, one bedroom 25 units, 2 bedroom 50 units, 3 bedrooms 3 office towers & commercial

complex, in addition to 5 restaurants retail space, banquet, meeting room, terrace & parking space3-milestones : Acquire land by QTR3, 2008; bind partnership & subcontracting by QTR 1, 2009, QTR 2010 construction

Complete4 -technical requirement :Permits must be obtained from municipality; the place subject to environment testing, build up

area should meet the area classifications5-limits and exclusions : The hotel delegates will pay additional fees for SPA, using refrigerator items in the serviced

apartments with extra fees, meeting room should be reserved ahead of time, retail spaces are subject to taxes. Delay performing by subcontractor subject to fines and penalties

6-customer review : Review will take place if the buildup area meets the business model, technical requirements, government’s roles, designs &master plan as well as design & quality of materials.

wbs

Project plan -WBS1- Legal department, they are assigned to do due diligence exercise, risk assessment, partnership agreements, prepare official MOU, letters & correspondence, which is considered as sub deliverable works. While lowest deliverable containing review task by officer & do necessary correspondence. 2-The business planning team, to prepare feasibility study, integrated business model after collocating information from all departments. Do financial analysis by analysts, ending in applying changes & updates to the model.3- The finance team is assigned to prepare budget, cost allocation, record accounts & bank transactions as well as do performance evaluation to the budget & cash flow after applying changes.4-the marketing team are assigned to prepare market study to extract supply & demand analysis for the real estate project, occupancy rates, pricing, competitors. As well as prepare periodical market reports to the managements in regard market condition to update our marketing & sales strategy.5- Sales department are responsible to prepare sales strategy aligned with the market pricing, competitors, & apply changes to the cash flow for any sold units. Sales department team also providing management with periodical report for the sales plan, changes & pricing.6- engineering team considered as the skeleton of the project , they are assigned to do the master plan, apply necessary changes , assign subcontractor, review schedules ,scope triangle , completion dates & delays , assign designers , as well as update the master plan & collaborate with all departments to provide them with the status updates to be applied to the business model, sales plan & financial budget . As we see the WBS constitutes of three levels, starting from top management, middle & officers to do the tasks & activities mentioned in the WBS. All levels are working in consensus to build integrated updated business model. & be able to do performance valuation

Project plan-AON chart 1 3 3 3 3.1 4 4 3.1.1 60 prepare business modell 0 financial feasibility 0 update business model1 2 3 3 1 4 4 2 6

1 2 4 4 2.1 6 6 2.1.1 70 0 prepare MOU/AGREEMENTS 0 review official doc

4 2 6 6 1 71 3 4

3 5.1 5 5 5.1.2 7

1 5 3 0 market supply/demand analysis 0 periodic market report to CEO0 prepare market research study 3 2 5 5 2 71 2 3

5 7.1 6 7 7.2.1 80 assign subcontractor 0 update master plan

1 7 5 5 1 6 7 1 80 prepare master plan 10 100 4 4 0 project closure

1 1 5 7.2 7 10 0 10do feasibiity study 1 design

0 1 1 4 3 7

7 4.1 8 8 4.1.1 9 9 4.1.2 105 4 7 0 cost allocation exercise 0 budget /cash flow updates 0 accounting /bank transactions0 prepare budget /cash flow 7 1 8 8 1 9 9 1 105 2 7

1 6 3 3 6.1 4 4 6.1.1 54 prepare sales strategy 4 review sales plan 4 prepare updated sales report5 2 7 7 1 8 8 1 9

du diligence /legal works

Project plan-Gantt chartslack predecessor duration/QTR QTR3-2008 QTR-4-2008 QTR1-2009 QTR3-2009 QTR-4-2009 QTR1-2010 QTR3-2010 QTR-4-2010 QTR1-2011 QTR3-2011

ID ACTIVITY 01 prepare feasibility study 0 0 12 due diligence /legal works 0 1 3

2.1 prepare MOU/agreements 0 2 22.1.1 review offi cial .doc 0 2.1 1

3 prepare business model 0 1 23.1 financial feasibility 0 3 1

3.1.1 update business model 0 3.1 24 prepare budget/cash flow 0 1 2

4.1 cost allocation 0 4 14.1.1 budget /cash flow update 0 4.1 / 6.1.1 14.1.2 accounting/bank transactions 0 4.1.1 1

5 market research study 0 1 25.1 market /supply demand analysis 0 5 2

5.1.1 periodic market report to CEO 0 5.1 26 prepare sales strategy 4 1 2

6.1 review sales plan 4 6 16.1.1 update sales report 4 6.1 1

7 prepare master plan 0 1 47.1 assign subcontractor 0 7 17.2 assign designers 1 7 3

7.2.1 update master plan 0 7.2 18 projecr closure 0 4.1.2 0

Cost and time phased budgetlybia project INF 2009 2010 2011 2012 2013 2014 2015 2016

cost forecast 5% 3QTR 4QTR

O/H (38,180,841) (38,180,841) (40,089,883) (40,089,883) (40,089,883) (40,089,883) (40,089,883)

land cost (103,422,060)

construction cost (125,346,667) (125,346,667) (125,346,667)

direct cost (44,962,304) (44,962,304.04) (47,210,419.24) (47,210,419.24) (47,210,419.24) (47,210,419.24) (47,210,419.24)

total cost (103,422,060) (125,346,667) (125,346,667) (208,489,812) (83,143,145) (87,300,302) (87,300,302) (87,300,302) (87,300,302) (87,300,302)

revenue forecasthotel income 74,037,070 74,037,070 77,738,923 77,738,923 77,738,923 77,738,923 77,738,923 serviced apartment income 7,973,775 7,973,775 7,973,775 7,973,775 7,973,775 7,973,775 7,973,775 office tower income & retail area income 897,741,900 897,741,900 942,628,995 942,628,995 942,628,995 942,628,995 942,628,995 total reveue 979,752,745 979,752,745 1,028,341,693 1,028,341,693 1,028,341,693 1,028,341,693 1,028,341,693 total cash flow (103,422,060) (125,346,667) (125,346,667) 1,188,242,556 1,062,895,890 1,115,641,995 1,115,641,995 1,115,641,995 1,115,641,995 1,115,641,995 cummulative (228,768,727) (250,693,333) 1,062,895,890 2,251,138,446 2,178,537,885 2,231,283,991 2,231,283,991 2,231,283,991 2,231,283,991

2008

Risk management planRisk plan set up in four steps , we identified risks from technical, management, external and organization . Risk assessment plan conducted to identify the likelihood of happening ,impact and which stage . Risk severity matrix describes all .

likel

ihoo

d 5 4 3 1-Lack to meet

Gov. permission/ license. Gov. 2-lack of funding sources.

1-competent contractors/ designers/ sales department efficiency. 2-quality of the product. 3-the targeted consumers satisfaction

2 Lack of evaluations, variance analysis reports. project plan, financial/ sales estimates

Lack of suppliers, consumers, staff. 2-lack of communication between subcontractors and the company

1 1 2 3 4 5

impact

High

low

Medium risk

Risk assessment plancontingency plan and risk response control conducted

Report project status Gantt chart for project control and slack calculation :

Actual completedBaseline duration

Slack

Actual completed

Baseline duration

Project closure Final report:Summary: the project was successful on terms of quality and customer satisfaction, despite the fact of slack some activities from its determined time budget as shown in the previous Gantt chart. And that followed by extra cost that the budgeted cost was $87,300,302, while the actual 89, 400,0 00 .Review and analysis: CV==-2,099,698 depicts higher actual cost than earned value; the contractor could come over the obstacles and meet customer satisfaction in terms of additional requirement. The Libyan culture was supportive to foreign investors in its rules and regulations.Recommendation: contingency should be there to meet any extraordinary event

Evaluation: evaluation and checklist conducted on staff and project manager via questionnaire to evaluate business performance, motivation of work environment , linkage of strategy to objectives ,customer satisfaction and quality .lessons learned to improve prospective projects .