INTEGRATED EXAMPLE PROJECTS SUBURBAN HOMES CONSTRUCTION PROJECT You developed the WBS of multiple levels, including work Using the WBS and RBS, you were asked to develop a packages, at the lowest level based on the initial project bottom-up cost estimate. This approach will require you to requirements below, which were further elaborated. Also, identify resources required for each lowest-level WBS activ- you were asked to identify all the available resources in- ity. Once resources are identified, you will estimate the effort house and resources required externally in Chapter 9 for required for each resource. The cost estimate is derived from this case study. If not developed, it is important now to the resource effort required. develop a resource breakdown structure (RBS) to estimate This approach tends to be more stable because, when the total budget of the project. estimating, errors have a chance to balance out. However, Building a single-family. partially custom-designed home it requires more preparation effort than top-down estimates. as required by Mrs. and Mr. John Thomas on Strath Dr., In essence, the estimate is based on a more detailed under- Alpharetta, Georgia. The single-family home will have the fol- standing of the project lowing features: Tasks to Complete . 3,200 square-feet home with 4 bedrooms and 2.5 . The resource expenditure of each lowest-level WBS activ- bathrooms Flooring-hard wood in the first floor, tiles in the kitchen ty is estimated. and bathrooms, carpet in bedrooms . Resource effort (duration and cost) in monetary terms is . Granite kitchen countertops, GE appliances in the kitchen estimated for all the resources * 3-car garage and external landscaping . Costs for all the activities under the same WBS element at . Ceiling-10' in first floor and vaulted 9' ceilings in the next higher level are rolled up. . This process is continued for all the WBS elements to bedrooms * 7-year warranty for structure and 2-year warranty for finish- determine the overall project estimate. Ing components 354 Part 3 Planning Projects CASA DE PAZ DEVELOPMENT PROJECT We received a donation of $20,000 from a personal friend The list of repairs considered necessary for our second who wants to remain anonymous. considered building (Saint Bernard) is complex and totals We will need a total of 12 (instead of 8) donations at the somewhere between $100,000 and $150,000. $5,000.00 level for a total of $60,000, for start-up funds. Two other possible buildings are Mitchell Avenue. An annual event, a list of corporations as sponsors, and estimated at $50,000.00, and Virginia Avenue, estimated at grant seeking are still developing. $74,000. Our choice of building will have major budget ramifications