What other basis might be used to make a decision besides expected costs? What then might the

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What other basis might be used to make a decision besides expected costs? What then might the decision be?





MINI CASE 

The Sharon Construction Corporation has been awarded a contract for the construction of a 20,000-seat stadium. The construction must start by February 15 and be completed within one year. A penalty clause of $15,000 per week of delay beyond February 15 of next year is written into the contract. Jim Brown, the president of the company, called a planning meeting. In the meeting he expressed great satisfaction at obtaining the contract and revealed that the company could net as much as $300,000 on the project. He was confident that the project could be completed on time with an allowance made for the usual delays anticipated in such a large project. Bonnie Green, the director of personnel, agreed that in a normal year only slight delays might develop due to a shortage of labor. However, she reminded the president that for such a large project, the company would have to use unionized employees and that the construction industry labor agreements were to expire on November 30. Past experience indicated a fifty

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  book-img-for-question

Project Management A Managerial Approach

ISBN: 978-0470226216

7th Edition

Authors: Jack R. Meredith, Samuel J. Mantel,

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