CASE 1: VA Condos

Clark Construction is building a set of new condos in the Virginia Beach. The project consists of 18 buildings, each housing 12 condominiums. Each building will border the Virginia Beach Golf Course designed by J. M. Architects. The minimum price for a condominium unit is $300,000, and buyers expect a high-quality project. Response to the initial promotion was so great that CLARK

Construction pre-sold all 216 units based solely on an architects conception and schematic plans of the project. One reason for the quick sell-out may have been the -YOU CAN MOVE IN BY OCTOBER- campaign. As part of this campaign, CLARK promised rebates of $20,000 cash to all 216 buyers if all the facilities, buildings, and other amenities were not completed by October 15.

As of mid-January, the project is well underway. The following PERT/CPM network details the precedence for the activities of the tasks remaining to be completed in the project. R and T will be subcontracted.

Three-time estimates (in days) for each of the other activities needed for each condo have been determined and are given in the following table (Note: all the condos will be constructed concurrently) You are required to use a full day as the smallest unit for scheduling the activities:

Activity R, the underground sewer activity, consists of installing pipes and connections to join all 18 buildings to the main city sewer system. CLARK Construction selected the Comey Construction alternative for this activity.

Comey Construction has submitted a bid of $300,000 for the design and construction of the required sewer project. It estimates a most likely completion time of 25 days, with a difference of plus or minus two days for the optimistic and pessimistic time estimates.

Activity T, the stream building activity, involves building a stream that runs throughout the project and connects the western and eastern boundaries. CLARK has selected the Lakeport Inc. alternative:

CLARK has received a bid of $400,000 from Lakeport, Inc. to design and build a meandering stream that will most likely be finished in 30 days, give or take five days.

Each activity is estimated to need 3 people with a cost of $150/day per person. The indirect cost of the project is estimated to be $3500/day. Assume that today is January 14, and that all the work is to be done on a five-day-per-week basis including holiday periods. Prepare a report for this project within which you address the followings:

Activity R, the underground sewer activity, consists of installing pipes and connections to join all 18 buildings to the main city sewer system. CLARK Construction selected the Comey Construction alternative for this activity.

Comey Construction has submitted a bid of $300,000 for the design and construction of the required sewer project. It estimates a most likely completion time of 25 days, with a difference of plus or minus two days for the optimistic and pessimistic time estimates.

Activity T, the stream building activity, involves building a stream that runs throughout the project and connects the western and eastern boundaries. CLARK has selected the Lakeport Inc. alternative:

CLARK has received a bid of $400,000 from Lakeport, Inc. to design and build a meandering stream that will most likely be finished in 30 days, give or take five days.

Each activity is estimated to need 3 people with a cost of $150/day per person. The indirect cost of the project is estimated to be $3500/day. Assume that today is January 14, and that all the work is to be done on a five-day-per-week basis including holiday periods. Prepare a report for this project within which you address the followings:

D-Recommend whether to spend $25,000 for additional legal assistance that would reduce the most likely time to attain the final permits and releases (activity Z) from 15 to 12 days and its pessimistic time from 25 to 18 days. Discuss

ACTIVITY CODE AND DESCRIPTION Estimated Activity Duration (a, m, b) Dependencies optimistic most likely pessimistic 5 8 7 12 17 10 17 24 41. Land measurements B2. Layout of measurement stakes C3. Analysis of surrounding environment D4. Building of foundation E5. Approval of construction papers F6. Layout of building framework G. Gas line instalment 12 22 B 6 13 20 C 11 15 19 C 9 18 27 H8. Electrical wiring 25 27 29 B, G 19. Interior plumbing 18 20 E B J10. Wall construction 12 25 38 DH KII. Insulation 10 36 IF 15 25 FI 10 17 K, J 23 10 35 G 9 J, K, L,G L12. Drywall M13. Roofing N14. Restaurant construction OIS. Swimming pool P16. Fencing Q17. Telephone lines R18. Completion of underground S19. Snack bar 6 10 14 J, K, L, G 12 22 32 MO MO 10 20 30 N T20. Stream building N U.21 Outside lighting 8 12 16 PS V22. Parking lots 3 3 7 P, S, 5 10 15 P, S, QT W23. Drainage construction X24. Safety inspection Y25. Landscaping 9 15 21 U, 6 RI Z26. Final permits releases 10 15 20 X, Y ACTIVITY CODE AND DESCRIPTION Estimated Activity Duration (a, m, b) Dependencies optimistic most likely pessimistic 5 8 7 12 17 10 17 24 41. Land measurements B2. Layout of measurement stakes C3. Analysis of surrounding environment D4. Building of foundation E5. Approval of construction papers F6. Layout of building framework G. Gas line instalment 12 22 B 6 13 20 C 11 15 19 C 9 18 27 H8. Electrical wiring 25 27 29 B, G 19. Interior plumbing 18 20 E B J10. Wall construction 12 25 38 DH KII. Insulation 10 36 IF 15 25 FI 10 17 K, J 23 10 35 G 9 J, K, L,G L12. Drywall M13. Roofing N14. Restaurant construction OIS. Swimming pool P16. Fencing Q17. Telephone lines R18. Completion of underground S19. Snack bar 6 10 14 J, K, L, G 12 22 32 MO MO 10 20 30 N T20. Stream building N U.21 Outside lighting 8 12 16 PS V22. Parking lots 3 3 7 P, S, 5 10 15 P, S, QT W23. Drainage construction X24. Safety inspection Y25. Landscaping 9 15 21 U, 6 RI Z26. Final permits releases 10 15 20 X, Y