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:
3. Based on the schedule would you recommend that G&E pursue this contact? Why? Include a one-page Gantt chart for the stadium schedule.
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Chapter 6 Solutions
PROJECT MANAGEMENT (LOOSELEAF)-W/ACCESS
- 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_forwardYou 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_forward
- Davidson Enterprises has a policy that individual expenditures in excess of $200,000 must be approved by the firm's board of directors. Ken Franklin (the sales manager of Davidson Enterprises), unfortunately, missed the deadline to have the board consider this project at its regular Septeinber meeting. Not waating to wait atil the next meeting in December, he subdivided the project into two parts-conitrction and decorsting (S190.000), and equipment puechases (S60.000)ither of which needed board approval because of the dollar amounta volved. The project was recently completed, and sales have hegun to recover. Required: Evaluate the act of Mr. Ken using the ethical decision-making model and support your answer with the relevant ethical theoriesarrow_forwardPls help ASAP for botharrow_forwardContract management is a critical function of these projects. Explain the risks that may occur during the performance of the above projects pertaining to contract management.arrow_forward
- In project managment, what are the main type of contracts?arrow_forwardA small technology consulting company, specializing in developing manufacturing software for the home construction industry, secured a large contract a year ago to develop a software for designing and manufacturing roof truss. The development contract was for two years, and the maintenance contract was for five years. As part of the contract, the client included a 0.8 percent penalty per month for each additional month beyond the development contract end date of the software development project. Project progress reports indicate that the software development project is about 60 percent complete, seems to be encountering various problems, and it is behind schedule. The consequence of this is that the company could potentially lose money if the 0.8 percent performance penalty is invoked. The managing partner, in charge of the project, was able to trace some of the problems to poor quality control, not enough experienced software engineers, and unnecessary testing of incomplete software…arrow_forwardWhat are the advantages from the contractor’s standpoint of subcontracting portions of a construction contract? Illustrate a typical case.arrow_forward
- Marie Collins, owner of Grand Canyon Helicopter Adventures (a sole proprietorship), wants to expand her business. To do this, she needs an influx of cash and help running the business. Should she bring in her friend who is quite wealthy, is good at handling day-to-day operations, but has a less than perfect flying record? Or should she continue to fly solo? List the risks and benefits associated with bringing in the new partner. Are there other options?arrow_forwardThe 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. Activity Activity Description Immediate Predecessors Estimated Duration (Weeks) Crew size Norm. Min. A Excavate - 2 5 2 B Lay the foundation A 4 3 2 C Put up the rough wall B 10 6 3 D Put up the roof C 6 6 3 E Exterior plumbing C 4 3 2 F Interior plumbing E 5 3 2 G Exterior siding D 7 5 3 H Exterior painting E, G 9 3 2 I Electrical work C 7 3 1 J Put up the wallboard F, I 8 4 2 K…arrow_forward1 Tom has several years of experience computer program. he signs a six month contract with the Metro to manage their implementation project. Maria has agreed to a fixed fee for the project and will set her own work schedule. he may bring in additional help who will report to and be paid directly by her.Tom self-employed or an employee? Tom has several years of experience computer program. he signs a six month contract with the Metro to manage their implementation project. Maria has agreed to a fixed fee for the project and will set her own work schedule. he may bring in additional help who will report to and be paid directly by her.Tom self-employed or an employee?arrow_forward
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