The Minimalism Tiny House Movement in the last decade is creating amazing business opportunities for construction companies and smart investors. With the advent of the 2021-2023 economy downturn in the United States, Tiny House Inc., a construction company in Spring, TX has joined this movement. The vision of Tiny House Inc. is to build comfortable, affordable, and efficient housing, which is environmentally friendly and contributes to saving the planet from waste and pollution.

M&G Angel Real Estate Investors share the same vision as Tiny House Inc. and are sponsoring the first Tiny House model. If the project is successful, they would like to expand their contract to create small communities and subdivisions of Tiny Houses in the area of Spring, TX. They strongly believe that in early 2024, the economy downturn will improve and the Tiny House market will be poised to explode. M&G Angel Real Estate Investors are partnering with Tiny House Inc. and have committed to funding the first Tiny House as a model to showcase the 2024 Tiny House Subdivision.

The scope of the Tiny House Project includes 800 sq. ft (40' x 20') of construction. The floorplan includes one bedroom (10' x 13'), one kid's bedroom (9' x 10'), one full bath (10' x 7'), an open kitchen (10'-6" x 7'-6") to living room area (10'-6" x 9'), dining area (12' x 7'), laundry (10' x 7'), and main entrance door area (5' x 5').

The Tiny House construction of their first model should be completed in 60 working days with a $90,000 budget or less. The project will be executed in three phases.

Pre-Construction Phase	Construction Phase	Close-Out Phase
Floorplan final approval Contract Execution	Foundation Rough framing Roofing Siding 1MEP rough-in Inspection of 1MEP rough-in Insulation walls, ceiling, & Floor Drywall	Painting Flooring and trimming Bathroom installation Kitchen cabinet installation Kitchen & Laundry Appliances Doors and windows Solar system installation	Punch List Final Inspection Close-Outdocuments

¹MEP:Mechanical, Electrical, and Plumbing

Labor Cost

The project team is composed of three employees with similar construction skills earning $20 per hour each, 1 MEP Rough-in expert earning $25 per hour, and one Project Manager in charge of managing the project earning $40 per hour.

Construction Material and Equipment Cost

• 300 studs for framing: $3,000
• Vinyl siding: $4,000
• 100 plywood sheets for walls and roofing: $2,000
• Insulation: Exterior (R19-1,000 sq ft.): $1,000; Attic (R30-800 sq ft.): $800; Interior (R13-300 sq ft.): $100;Floor (R25-800S1 ft.): $2,500
• 60 sheetrock sheets: $900
• Paint: $400
• Flooring: $1,000
• Kitchen Cabinets: $2,000
• Appliance equipment (stove, microwave, refrigerator, and dishwasher) cost: $2,500
• Bathroom materials: $1,500
• MEP material ($4,500 ): includes Plumbing and electrical $1,500; HVAC: $3,000.
• Door and Windows: $2,500

Contractors

• Foundation with underground plumbing rough-in: $5,500
• MEP Inspector cost: $500
• 5KW solar panel system and installation cost: $10,000

Project Charter

Project Name	Tiny House	Project #:TN-000
Project Manager	Student's Name	Start Date	End Date
Project Sponsor	M&G Angel Real Estate Investor

Project Description:

• Tiny House Project includes 800 sq ft (40'x20') of construction. The floorplan includes the following.

• 1 bedroom (10' x 13')
• 1 kid's bedroom (9' x 10')
• 1 full bath (10' x 7')
• Open kitchen (10'-6" x 7'-6")
• Livingroom area (10'-6" x 9')
• Dining area (12' x 7')
• Laundry (10' x 7')
• Main entrance door area (5' x 5')

Business Need:

• The 2021-2023economy downturnin the United States has created business opportunities in the real estate market to build Tiny Houses that are comfortable, affordable, efficient, environmentally friendly and can contribute to saving the planet from waste and pollution.

Business Objectives

• Building affordable housing under $90,000 within 60 days

Project Requirements

• Home must meet local building codes.
• Foundation: 6 in x 40 ft x 20 ft concrete slab with underground plumbing rough-in
• All windows and doors must pass the required energy ratings
• Exterior wall insulation
• Ceiling insulation
• Floor insulation
• 5KW solar panel system to provide electricity to the whole house

Milestones

1. Project Name: The Tiny House Project

1.1 Pre-Construction Phase

1.2 Construction Phase

1.3 Close-Out Phase

Budget

• $90,000

User Acceptance Criteria

• The Tiny House project must meet all deliverables and project requirements.
• Its cost must be under $90,000.
• It must be completed in or under 60 working days.

High-Level Project Assumptions

• The economy will improve in 2024 and the Tiny House market will explode.

High-Level Project Constraints

• Budget

Project Exclusions

• A garage is not part of the project.

Major Project Risks

• The U.S. inflation continues in 2024.

Key Stakeholders

• Tiny House Corp. CEO
• M&G Angel Real State Investors
• Project Manager
• Project team members

After determining the project schedule, the team is ready to allocate the resources and calculate the budget. Using the information provided in the project background and the project schedule, the team needs to complete Table 1 below to determine the project budget.

[Double-click on Table 1 below to enter the cost of resources for the Tiny House Project.]

Table 1. Cost of Resources

Manpower Hr. Rate Material Cost Contractors Cost Material Total Cost S Contractor Total Cost SAllocation of Resources: Manpower Assignments and Estimated Labor Cost Table 2: Team Assignments and Estimated Labor Cost Duration Initials: PM C1 C2 C3 MEP Estimated Tasks Task (Hrs) Activity (Days) Hr. Rate: Manpower Cost. Read Step 1 Read Step 2 TOTAL DURATION 0 0Item Cost Comments Manpower Costs See the manpower cost calculated in Table 2. Material Cost See the material cost calculated in Table 1. Fixed Cost See the fixed cost calculated in Table 1. Contingecy Reserve for risk management activities S Assume a 3% of Direct cost(Labor, Material, & Fixed costs) for contingency PROJECT BUDGET (i.e., Cost Baseline)