Read Case 7.2, "Silver Fiddle Construction" . Write a 1-2 page summary report that includes the following:

• • At least five risks associated with the project.
  • A risk assessment form similar to figure 7.6, "Risk Assessment Form," analyzing identified risks.
• • A risk response matrix similar to figure 7.8, "Risk Response Matrix," outlining how you would deal with each risk.

Case 7.2 Silver Fiddle Construction You are the president of Silver Fiddle Construction (SFC), which specializes in build- ing high-quality, customized homes in the Grand Junction, Colorado, area. You have just been hired by the Czopeks 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 Grand Junction is booming. You are ten- tatively scheduled to complete 11 houses this year. You have promised the Czopeks that the final costs will range from $450,000 to $500,000 and that it will take five months to complete the house once groundbreaking has begun. The Czopeks are will- ing to have the project delayed in order to save costs. You have just finished a preliminary scope statement for the project (see below). You are now brainstorming potential risks associated with the project. 1. Identify potential risks associated with this project. Try to come up with at least five different risks. 2. Use a risk assessment form similar to Figure 7.6 to analyze identified risks. 3. Develop a risk response matrix similar to Figure 7.8 to outline how you would deal with each of the risks. 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 2,500-square-foot, 242-bath, 3-bedroom, finished home. A finished garage, insulated and sheetrocked. 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 inframing, 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 21. 4. Ceiling insulation must meet an R factor of 38. 5. Floor insulation must meet an R factor of 25. 6. Garage will accommodate two cars and one 28-foot-long Winnebago. 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. CUSTOMER REVIEW Bolo and Izabella Czopek. FIGURE 7.6 Risk Assessment Form Risk Event Likelihood Impact Detection Difficulty When Interface problems Conversion System freezing 2 5 5 Start-up User backlash Postinstallation Installation Hardware malfunctioning 55 FIGURE 7.8 Risk Response Matrix Risk Event Response Contingency Plan Trigger Who Is Responsible Interface problems Mitigate: Test prototype Work around until help comes Not solved within 24 hours Nils System freezing Mitigate: Test prototype Reinstall OS Still frozen after one hour Emmylou User backlash Mitigate: Prototype demonstration Eddie Increase staff support Call from top management Jim Equipment malfunctions Mitigate: Select reliable vendor Transfer: Warranty Order replacement Equipment fails