Concept explainers
The G&E Company is preparing a bid to build the new 47,000-seat Shoreline baseball stadium. The construction must start on July 3, 2017, and be completed in time for the start of the 2020 season. A penalty clause of $250,000 per day of delay beyond April 3 is written into the contract.
Percival Young, the president of the company, expressed optimism at obtaining the contract and revealed that the company could net as much as $3 million on the project. He also said if they were successful, the prospects of future projects are bright since there is a projected renaissance in building classic ball parks with modem luxury boxes.
Given the information provided in Table 63, construct a network schedule for the stadium project and answer the following questions:
What is the critical path for the project?
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Project Management: The Managerial Process (Mcgraw-hill Series Operations and Decision Sciences)
- The FWO has just made the winning bid of 54 million Rs. to construct a new Building. Company has assigned you to this project to help ensure that it stays on schedule. The contract includes the following provisions: • A penalty of 300,0000 Rs. if Project has not completed construction by the deadline 47 weeks. • To provide additional incentive for speedy construction, a bonus of 150,0000 Rs. will be paid to if the building is completed within 40 weeks. Estimated Duration Crew size Activity Activity Description Immediate Predecessors (Weeks) Norm, Min. A Excavate 2 B Lay the foundation A 4 3 Put up the rough в 10 6 3 wall D Put up the roof C 6 3 Exterior plumbing C 4 2 Interior plumbing 3 G Exterior siding D 3 Exterior painting E, G 9 3 Electrical work C 3 1 J Put up the F, I 4 wallboard K install the flooring J 4 4 2 L Interior painting J 4 2 Exterior fixtures Interior fixtures M H 2 1 N K, L 6 1 Develop a comprehensive plan based on AOA or AON diagram that includes answers to the…arrow_forward1.What is the point at which an owner can begin to occupy a building or use it for its intended purpose? At the end of the warranty period After final completion When the payment bond is terminated After substantial completion 2.What is used to determine periodic payment amounts on unit price contracts? Submitted invoices, receipts, and timesheets plus the contractor's fee. A fixed, monthly installment negotiated at the start of the project. Schedule of Values and percentage completion on each pay item Unit prices originally bid and quantities measured.arrow_forwardEngaged couple Marina and Mark were the winners of a reality TV show involving racing other couples around Australia. They decided to use some of the winnings on their wedding. They checked out a number of venues and finally decided on the Grand Ballroom at the Hotel Grand Inquisitor. Marina and Mark signed a ‘wedding package’ contract with the hotel, which provided for the following: Hire of ballroom - $15,000 Catering (excluding cake) - $9,000 Wedding cake (two-tier) - $500 Honeymoon suite (one night) - $400 Total - $24,900 The wedding reception was a happy event. However, when it came to the time to reveal and cut the cake, Marina and Mark were shocked to learn that earlier in the day a hotel waitress had clumsily dropped the specially baked wedding cake, and because there was no time to prepare another, the two-tier cake provided by the hotel was in fact two sponge…arrow_forward
- Engaged couple Marina and Mark were the winners of a reality TV show involving racing other couples around Australia. They decided to use some of the winnings on their wedding. They checked out a number of venues and finally decided on the Grand Ballroom at the Hotel Grand Inquisitor. Marina and Mark signed a ‘wedding package’ contract with the hotel, which provided for the following: Hire of ballroom - $15,000 Catering (excluding cake) - $9,000 Wedding cake (two-tier) - $500 Honeymoon suite (one night) - $400 Total - $24,900 The wedding reception was a happy event. However, when it came to the time to reveal and cut the cake, Marina and Mark were shocked to learn that earlier in the day a hotel waitress had clumsily dropped the specially baked wedding cake, and because there was no time to prepare another, the two-tier cake provided by the hotel was in fact two sponge…arrow_forwardNonearrow_forwardRare Agri-Products Ltd. is considering a new project with a projected life of seven (7) years. The project falls under the government’s subsidy program for encouraging local agricultural products and is eligible for a one-time rebate of 25% on any initial equipment installed for the project. The initial equipment (IE) will cost $41,000,000. An additional equipment (AE) costing $3,500,000 will be needed at the end of year 3. At the end of seven (7) years, the original equipment, IE, will have no resale value but the supplementary equipment, AE, can be sold for $50,000. A working capital of $1,350,000 will be needed. The project is forecast to generate sales of agri-products over the seven years as follows: Year 1 70,000 units Year 2 100,000 units Years 3-5 250,000 units Years 6-7 325,000 units A sale price of $150 per unit for the first two years is expected and then decline to $90 per unit thereafter as the newness of the product loses some sheen. The variable expenses will amount to…arrow_forward
- You are to be the Contract Administrator on a project for a new facility of a five story Girne American University dormitory that houses 850 students. The engineer suggests that in the case of cost-plus contract 18, 10, 3 and 10 percent should be added to the actual labor, Renewing the roof coverings, materials, and Internal alterations costs respectively. In the case of the cost plus fixed fee contract, the fixed fee should be £40,000. In the case of the cost-plus sliding fee contract, the fee should be 14%, 12%, 10% for resulting total cost in the ranges of £300,000 to £350,000; £350,000 to £375,000 and £375,000 to £425,000 respectively. For the cost plus guaranteed ceiling price contract, the fee should be £50,000 less 35% of any actual cost above the target cost £350,000. The expected cost for superstructure and the installation of new equipment is £192,000. a) Calculate the expected total cost of the project. b) Which of the above negotiated contract to you recommend…arrow_forwardJenny and Chad, a couple of college seniors, send out birth announcements to their friends, including a local real estate agent named Mort. In the announcement, the couple informs everyone that they're looking to move out of student housing and into a starter home right after graduation. Mort gets right on the task of finding homes that fit their needs. Once he has a few properties on his list, Mort calls the couple and they schedule some showings. What form of agency, if any, exists between the couple and Mort? Actions of the parties have led to the creation of express agency. An explicit request for representation was made between the parties. Actions of the parties have led to the creation of implied agency. No agency relationship exists at this point between the parties.arrow_forwardPls help ASAP for botharrow_forward
- Before a project can proceed, a contract must be signed between the customer and the contractor. The contract usually includes terms and conditions.Using any project of your choice, identify and explain any two terms andconditions deemed important to include in the project’s contract.arrow_forwardngaged couple Marina and Mark were the winners of a reality TV show involving racing other couples around Australia. They decided to use some of the winnings on their wedding. They checked out a number of venues and finally decided on the Grand Ballroom at the Hotel Grand Inquisitor. Marina and Mark signed a ‘wedding package’ contract with the hotel, which provided for the following: Hire of ballroom - $15,000 Catering (excluding cake) - $9,000 Wedding cake (two-tier) - $500 Honeymoon suite (one night) - $400 Total - $24,900 The wedding reception was a happy event. However, when it came to the time to reveal and cut the cake, Marina and Mark were shocked to learn that earlier in the day a hotel waitress had clumsily dropped the specially baked wedding cake, and because there was no time to prepare another, the two-tier cake provided by the hotel was in fact two sponge cakes…arrow_forwardConsider a project to build a secondary school. Prepare a report that sets and discusses the main components of a CBA of this chosen project and write as if it is being prepared for a senior civil servant, who may be interested in undertaking a full Cost Benefit Analysis for the project. At this point, the senior civil servant wants to know what the scope of the appraisal of the project would contain, and how it would be undertaken, including the details of the valuation of eventual non-market items. The report should provide details of the techniques of cost-benefit analysis and should specifically describe and detail the items (costs and benefits) being considered in the analysis. Note: not required to conduct an actual CBA or do any calculations. Structure 1. The chosen project - should be appropriate study for a social cost-benefit study 2. Set out the Cost-Benefit Analysis method being used in general terms, including the choice of the discount rate. 3. Sketch out and list the…arrow_forward
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