A couple are planning their dream house. The plans show the size of the house to be 2,000 square feet. The average price for a lot and house similar to this one has been $250 per square foot. Fortunately, their son is a plumber and they can save money by installing the plumbing themselves. They believe they can complete the exterior painting with the help of their two sons.

The following average cost information is available:

Exterior

Excavation & foundation 11%

Windows & siding 12%

Paving and walkways 2%

Exterior painting5%

Interior

Framing15%

Electrical wiring etc.6%

Plumbing roughed in6%

HVAC & furnace12%

Drywall & Plaster10%

Interior painting6%

Plumbing fixtures 4%

Light fixtures 4%

Flooring 7%

a) What is the estimated cost for the house if they use contractors to complete all of the houses?

b) Estimate the house cost if they do some of the work themselves (ignore thecost of supplies).

c) If the contractor hires laborers at $45/hour, with an overhead of 25%, what are the direct costs oflabor and the total direct costs for a laborer?

d) Draw a work breakdown structure for this project (use breakdown categories that make sense)