Question: Sub - contractor A bids 2 0 0 , 0 0 0 OMR. It is estimated that there is a 3 5 % possibility of

Sub-contractor A bids 200,000 OMR. It is estimated that there is a 35% possibility of completing
the project by 50 days late. As per your contract with the client, you must pay a delay penalty of
4,500 OMR per calendar day for every day you deliver late.
Sub-contractor B bids 260,000 OMR. It is estimated that there is a 13% possibility of completing
the project by 15 days late. As per your contract with the client, you must pay a delay penalty of
4,500 OMR per calendar day for every day you deliver late.
Determine which sub-contractor is appropriate for your projects critical path activities. Both subcontractors promise successful delivery and high-quality work.

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