Estimate the final construction budget. What should they do about the work slowdown? Create a Gantt chart with the revisions to the duration of the interiors step. When will the project be completed? What is the importance of the fact that the Hospital staff expenses were not reported under the project budget? Write a one?page audit report of this project?

	Budgeted	Actual as of 5/24/X8	Remaining
Construction Costs:
Building	$6,743,000.00	$6,743,000.00	$0.00
Contingency	674,300.00	453,277.00	221,023.00
Land	600,000.00	600,000.00	0
Subtotal	8,017,300.00	7,796,277.00	221,023.00
Other Related Cost
Program development & equipment costs	405,000.00	354,332.00	50,668.00
Furniture	400,000.00	249,679.00	150,321.00
A&E fees
Financing costs	202,000.00	202,000.00	0
Capitalized interest	135,000.00	135,000.00	0
Site improvements	125,000.00	147,655.00	?22,655.00
Phone & IS system	30,000.00	22,438.00	7,562.00
Kitchen equipment	30,000.00	23,776.00	6,224.00
Subtotal	$1,327,000.00	$1,134,880.00	$214,775.00
Organizational Costs:
Legal and accounting	$25,000.00	$0.00	$25,000.00
Initial marketing	250,000.00	0	250,000.00
Project consultant	80,000.00	0	80,000.00
Follow?up market survey	20,000.00	0	20,000.00
Subtotal	$375,000.00	$0.00	$375,000.00
Total	$10,066,300.00	$9,278,157.00	$788,143.00

Details:

Friendly Assisted Living Facility Case8

It was a beautiful day in mid?May 20?8. The Friendly Medical Center Assisted Living Facility project was nearing completion. As usual, the construction project manager, Kyle Nanno, was thinking about the construction project's schedule. It seemed to him that work on finishing the interior of the building was slowing down a bit. He knew that the final weeks of a project always seemed to take forever, but he also knew that the project was running almost 2 weeks late as a result of a problem encountered during the excavation phase of the construction project.

During March and April, it appeared that they were catching up. Kyle had discussed with the construction contractor that Friendly Medical Center would pay overtime to catch up, but the speed?up was temporary, and the job continued to be late. Kyle was not quite sure why. Progress just seemed to be in slow motion. He decided to meet with Fred Splient, the President and CEO of Friendly Medical Center, to discuss the problems.

Fred suggested that Kyle call in someone to audit the project, in particular to examine the project schedule carefully. Fred also wanted the auditor to look at the project expenses to date. Fred had just received a crude spreadsheet from the CFO, and it did not reflect the progress he thought should have been made as this project was coming to an end.

Please note MSP calculates the duration variance for each step of the action plan by subtracting the actual from the baseline. The summary task baseline and actual duration are then rolled up to the summary tasks baseline and actual duration figures. The summary tasks duration variance is then calculated by adding the summary task actual duration plus the remaining duration and then subtracting that sum from the baseline duration.

Caroline and Fred praised Kyle for his management of the Construction budget.

As soon as Caroline and Kyle left Fred's office, Fred called his CFO to find out why the other items were still not reflected in the project budget.

Assisted Living Facility Construction Project Update as of 5/24/XS 0x8 Remaining DuationDuration Variance un Jul AuSep Task Name Baseline Duration ID 76.63 days 28.61 days 0 days 0 days 0 days 46.8 days 0 days 8 wks 0 days 0 days 8 wks 14 days 14 days 15 days -14 days -14 days 0 days 0 days 0 wks 0 days 0 days 0 wks 369 days 307.47 day 1 Construction& furnishing 314.49 days 110 days 99 days 120 days 187.2 days 0 days 0 wks 0 days 0 days 0 wks 329 days 2 Facility construction 95 days Phase 1- Foundation & excavation Phase 2- Structure Phase 3-Enclosure Phase 4- Interiors 100% 113 days 134 days 234 days 0 days 8 days 0 days 0 days s days 100% 80% 7 First 45 (light assisted) units turned over 0% 0% 0% 8 First 45 units ready for residents 9Remaining 57 units (light &heavy) turned over 10 Construction complete 11 Building ready for residents Baseline summary Milestone Current date shown as: % Complete is % of baseline time Task Assisted Living Facility Construction Project Update as of 5/24/XS 0x8 Remaining DuationDuration Variance un Jul AuSep Task Name Baseline Duration ID 76.63 days 28.61 days 0 days 0 days 0 days 46.8 days 0 days 8 wks 0 days 0 days 8 wks 14 days 14 days 15 days -14 days -14 days 0 days 0 days 0 wks 0 days 0 days 0 wks 369 days 307.47 day 1 Construction& furnishing 314.49 days 110 days 99 days 120 days 187.2 days 0 days 0 wks 0 days 0 days 0 wks 329 days 2 Facility construction 95 days Phase 1- Foundation & excavation Phase 2- Structure Phase 3-Enclosure Phase 4- Interiors 100% 113 days 134 days 234 days 0 days 8 days 0 days 0 days s days 100% 80% 7 First 45 (light assisted) units turned over 0% 0% 0% 8 First 45 units ready for residents 9Remaining 57 units (light &heavy) turned over 10 Construction complete 11 Building ready for residents Baseline summary Milestone Current date shown as: % Complete is % of baseline time Task