1. In managing the project, how did Susan explicitly address the fact that it was an overseas...

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1. In managing the project, how did Susan explicitly address the fact that it was an “overseas”

project?

Spirit Electronics Company, a US firm, is building an office branch in Puerto Rico. Susan Marcie of the construction management firm Weller & Waxhall is managing the project; this is her first non-US project. She visited the project site and met with the person who would be the local project representative. In preparing the budget, she sought bids from vendors in the United States and Puerto Rico. Bids received from US firms seemed extremely high; this plus the fact that labor laws in Puerto Rico require that some jobs be performed by local vendors led Susan to select mostly Puerto Rican vendors.

Spirit wanted the project completed within 30 weeks. Since cost bids from the vendors were slow to arrive, Susan prepared a budget using her firm’s cost-estimating spreadsheet and standardized costs. Spirit’s budget review process takes 4 weeks and, she thought, the quicker the budget is approved, the sooner the project can begin. The project budget for $690,457 was approved.

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