Question 3 - Project Risk Management (20 marks) You are the president of Silver Fiddle Construction (SFC), which specializes in building high-quality, customized homes in Western of Melbourne area. You have just been hired by the John Family to build their dream home. You operate as a general contractor and employ only a part-time bookkeeper. You subcontract work to local trade professionals. Housing construction in Rock bank area is booming You are tentatively scheduled to complete 12 houses this year. You have promised the John Family that the final costs will range from $450,000 to $500,000 and that it will take six months to complete the house once ground breaking has begun. The John Family is willing to have the project delayed in order to save costs. You have just finished a preliminary scope statement for the project. PROJECT SCOPE STATEMENT PROJECT OBJECTIVE To construct a high-quality, custom home within five months at a cost not to exceed $500,000 DELIVERABLES A450 sq. metres, 3-bath, 3-bedroom, finished home. A finished garage, insulated and sheet roof. Kitchen appliances to include range, oven, microwave, and dishwasher High-efficiency gas furnace with programmable thermostat. MILESTONES 1. Permits approved July 5. 2.Foundation poured July 12. 3. "Dryin"-framing, sheathing. plumbing, electrical, and mechanical inspections passed September 25. 4. Final inspection November 7. TECHNICAL REQUIREMENTS 1. Home must meet local building codes. 2. All windows and doors must pass NFRC class 40 energy ratings 3. Exterior wall insulation must meet an "R" factor of 5. 4. Ceiling insulation must meet an "R" factor of 4. 5. Floor insulation must meet an "R" factor of 3. 6. Garage will accommodate two cars. 7. Structure must pass seismic stability codes. LIMITS AND EXCLUSIONS 1. The home will be built to the specifications and design of the original blueprints provided by the customer. 2. Owner is responsible for landscaping 3. Refrigerator is not included among kitchen appliances 4. Air conditioning is not included, but house is prewired for it. 5. SFC reserves the right to contract out services. You are now brainstorming and analyzing potential risks associated with the project Identify potential risks associated with this project. Try to come up with at least five different risks. (5 marks) Use a risk assessment form/table to analyze identified risks. (5 marks) Develop a risk response matrix to outline how you would deal with cach of the risks (10 marks) You are the president of Silver Fiddle Construction (SFC), which specializes in building high-quality, customized homes in Westem of Melbourne area. You have just been hired by the John Family to build their dream home. You operate as a general contractor and employ only a part-time bookkeeper. You subcontract work to local trade professionals. Housing construction in Rock bank area is booming. You are tentatively scheduled to complete 12 houses this year. You have promised the John Family that the final costs will range from $450,000 to $500,000 and that it will take six months to complete the house once ground breaking has begun. The John Family is willing to have the project delayed in order to save costs. You have just finished a preliminary scope statement for the project PROJECT SCOPE STATEMENT PROJECT OBJECTIVE To construct a high-quality, custom home within five months at a cost not to exceed $500,000 DELIVERABLES A 450 sq. metres, 3-bath, 3-bedroom, finished home. A finished garage, insulated and sheet roof. Kitchen appliances to include range, oven, microwave, and dishwasher. High-efficiency gas furnace with programmable thermostat MILESTONES 1. Permits approved July 5. 2.Foundation poured July 12. 3. "Dry in" framing, sheathing, plumbing, electrical, and mechanical inspections passed September 25. 4. Final inspection November 7. TECHNICAL REQUIREMENTS 1. Home must meet local building codes. 2. All windows and doors must pass NFRC class 40 energy ratings 3. Exterior wall insulation must meet an "R" factor of 5. 4. Ceiling insulation must meet an "R" factor of 4. 5. Floor insulation must meet an "R" factor of 3. 6. Garage will accommodate two cars. 7. Structure must pass seismic stability codes. LIMITS AND EXCLUSIONS 1. The home will be built to the specifications and design of the original blueprints provided by the customer 2. Owner is responsible for landscaping, 3. Refrigerator is not included among kitchen appliances. 4. Air conditioning is not included, but house is prewired for it S. SFC reserves the right to contract out services. You are now brainstorming and analyzing potential risks associated with the project a) Identify potential risks associated with this project. Try to come up with at least five different risks. (5 marks) Use a risk assessment form table to analyze identified risks. (5 marks) Develop a risk response matrix to outline how you would deal with each of the risks. (10 marks)