What is the direct cost from the project

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Reference no: EM131247220

Engineering Management Assignment: Project Management Plan

HOUSE CONSTRUCTION PROJECT

PROJECT BRIEF - Project Background

You are a project manager for a medium-sized house construction company, and you just got a phone call from the company owner saying that he is with a customer who wants to know the indicative price for a 200 m2 house to be constructed in a section he owns. He wants you to call him back with to him a quick estimate of how much it will cost and how long it will take to complete the project. He also told you that you will be the project manager assigned to this project if and when the company owner closes the deal later.

What you are required to do:

To develop a Project Management Plan from the information given and set up the project using Microsoft Project.  You are required to submit the following for marking:

i. A Project Management Plan report AND

ii. a Microsoft Project 2010 ( or later version) file of the Project schedule (i.e. WBS, Gantt Chart and Network diagram) and all planning information

Your Project Management Plan report must cover

  • 10 project management knowledge areas
  • answer the key questions in the project brief
  • The role of the Engineer & Society
  • Environment & Sustainability issues relevant to the project
  • Any ethical issues
  • List all assumptions made

 Please refer to the following:

  • Marking Guide for the actual distribution of marks
  • Project Details and Key questions

PROJECT DETAILS & KEY QUESTIONS

ESTIMATING

You are a project manager for a medium-sized house construction company, and you just got a phone call from the company owner saying that he is with a customer who wants to know the indicative price for a 200 m2 house to be constructed in a section he owns. He wants you to call him back with to him a quick estimate of how much it will cost and how long it will take to complete the project. He also told you that you will be the project manager assigned to this project if and when the company owner closes the deal later.

1. Having been in the construction business and with this company for a good while, you know that direct cost is about $1,000 per m2. The indicative price is around twice the direct costs, plus or minus 10%. What is the indicative price you will give your manager?

2. You were about to make the call when suddenly an incoming email popped in from Finance about price adjustment of 10% for all direct costs because of inflation over the past several years. What will be the new indicative price?

3. A typical house 100 m2 to 300 m2 will take about 3 to 4 working months (or 12 to 16 working weeks) to complete. What indicative schedule, in working months or working weeks, will you give the owner?

4. After giving the indicative price to your boss, you went down to do a more detailed estimate. First you need WBS. Create and sketch aWBS from the following:

Foundation

Site preparation and excavation

Reinforced concrete

Framing and Roofing

Rough framing

Siding, windows, insulation, plaster

Roof

Plumbing

Plumbing rough in

Plumbing fixtures

Electrical and Heating

Wiring rough in

Lighting and heating fixtures

Finishing

Painting

Finish hardware and chattels

Floor and carpet

Interior decorating

5. Using the apportioning method, determine the cost of all the project tasks.

Foundation        

Site preparation and excavation                3%

Reinforced concrete       4%

Framing and Roofing     

Rough framing  12%

Siding, windows, insulation, plaster         14%

Roof      9%

Plumbing            

Plumbing rough in           6%

Plumbing fixtures            4%

Electrical and Heating    

Wiring rough in 4%

Lighting and heating fixtures       8%

Finishing             

Painting                8%

Finish hardware and chattels      12%

Floor and carpet               8%

Interior decorating          8%

Total      100%

The owner came back saying the client is very excited because it falls very much within his budget. He now wants a more detailed estimate and a proposal.

6. Estimate the cost of Foundation work given the following:

  • Site Preparation and Excavation will need 3 men to work over 5 days. Each personnel costs $200 per day. A mini-bulldozer is also needed for 2 days at $1,000 a day, and about $1,500 for various materials.3 marks
  • Reinforced Concrete foundation will need 4 men to complete the work over 4 days. 18 m3 of reinforced concrete at $300 per m3 will be needed.2 marks

a. From your detailed estimate, how much is the total cost of Foundation work?

b. What is the variance (%) between your two estimates (i.e., apportioning vs. detailed method)?

c. What does the variance say about your company's estimating methods?

7. Estimate the duration of Painting work given the following:

  • From the house plan, it was estimated that there will be about 1,350 m2 of surface to be painted.
  • You can put up to 3 personnel to work on painting and each of them can finish 56 m2 of surface a day

a. How soon will it take to complete all the Painting work?

b. How many days longer will it for the Painting work to finish if you are able to get only 2 personnel for it?

8. Your detailed (bottom-up) estimate shows the following:

  • Labour, Materials and Equipment

Labour                  $65,600

Materials             $6,500

Equipment          $155,900

a. What is the Direct Cost from the project?

  • Direct Overhead Cost from the project is 25% of the Direct Cost

b. What is the Total Direct Costs from the project? (N.B. Total Direct Costs is equal to Total Direct Cost plus Direct Overhead Cost)

  • General and Administrative (G&A) Overhead is 20% of Total Direct Cost
  • Management Contingency is 10% of Total Direct Cost
  • Profit is 30% of Total Direct Cost

c. What is the Total Bid Price for this project?

d. What is the variance (%) between the Indicative Price and the Total Bid Price for this project? (N.B. Remember in #1, your Indicative Price may vary within + or - 10% of estimate and so the from Total Bid Price will be different depending on what you used).

Attachment:- Management Assignment.rar

Reference no: EM131247220

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Reviews

len1247220

10/18/2016 7:49:21 AM

Need it as per the guidelines. In Microsoft Project initial set-up. Create the WBS, Display the WBS Codes. Enter estimated task Duration, Enter the task Predecessor to create a project schedule. Change the Timescale to display months (middle tier) and weeks (bottom tier). Use the Gantt Chart Wizard to display critical path. Include the lag for concrete curing.

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