QUESTION 3: PROJECT MANAGEMENT - NETWORK ANALYSIS 30 MARKS Moore Housing Contractors is negotiating a deal with Countryside realtors to build six houses in a new development. Countryside wants Moore Contractors to start in late December or early March and build on through the summer and into November. The summer months are an especially busy time for the realty company, and it believes it can sell the houses almost as soon as they are ready, and maybe even before. The completion time is so critical to the Countryside Realtors that it is insisting that a project management network accompany the contractor's bid for the job, with an estimate of the completion time for a house. The realtor also needs to be able to plan its offerings and marketing for the summer. It wants each house to be completed with 45 days after it is started. If a house is not completed within this time frame, it wants to be able to charge the contractor a penalty. Mary and Sandy Moore, the president and vice president, respectively, of Moore Contractors, are concerned about the prospect of penalty charge. They want to be very confident that they can meet deadline for a house before they enter into any kind of agreement with a penalty involved. If there is a reasonable likelihood that they cannot finish a house within ?? days, they want to increase their bid to cover potential penalty charges. Time estimates (days) Activity Activity Predecessor None None 2 10 A B,C B, C 9 DE 3 39 10 15 10 DE H F, G GI 12 15 18 K | | 20 | 30 | 35 a) Develop a CPM/PERT network for Moore Housing Contractors and determine the probability that the company can complete a house within 60 days. [22 marks] b) Does it appear that the Moores may need to increase their bid to compensate for potential penalties? [2.5 marks] c) Indicate which project activities Moore Housing Contractors should be particularly diligent to keep on schedule by making sure workers and materials are always available. [4 marks] d) Which activities might the company shift workers from as the need arises? [1.5 marks]