A building consultant has broken the project into a number of separate tasks identified by letters.Preliminary estimates of the normal time and cost have been provided:

Task Task Description Precedence Time (days) cost($) crash time (days) Per day revised cost

A Preparation of drawings and permits - 14 72,500 10 10,000

B Calling and letting of tenders - 68 1,66,750 66 23,000

C Site preparation and excavation A 6 1,16,000 4 16,000

D Pouring the foundation A 24 2,50,000 24 -

E Framing C,D 40 1,45,000 30 20,000

F Plumbing and electrical work D 18 1,59,500 12 22,000

G Interior finished F 16 1,08,750 12 15,000

H Exterior finishes E,G 22 1,75,000 22 -

I Installing and commissioning new machines B,E 34 1,01,500 30 14,000

J Finishing touches and final work through H,I 32 64,000 32 -

The building consultant has advised that the following relationship exists among these tasks:

A and B can be commenced at the same time.

C and D can both be commenced as soon as A is completed.

E cannot be commended until C and D are completed.

F can be commenced once D is completed.

G can be started once F is finished.

H cannot be commenced until E and G are completed.

I cannot start until B and E are completed.

J cannot commence until H and I are completed.

Required:

1. Calculate the minimum time and associate cost in which the project could be completed. (8 marks)
2. The building is nearing completion, Paige Turner has written into the contract penalty provisions if the work is not finished on time.The only remaining task to complete is J and so far it is on schedule to complete in time however there is still 12 days to go, the cost has increased from $2,000 per day to $3,500 per day. The building consultant, in discussion with Paige, feels that an investigation might be worthwhile.The cost to investigate is $4,000 per day which might show if there is problem and if this the case it can be rectified by $10,000.This would lead to the cost being reduced to $2,000 for the remaining days.The probability of being able to rectify the problem is 0.7, should the consultant investigate?(7 marks)