ACCT90 - Cost and Resource Estimation Case Study: Drake's New Pool One uncharacteristically hot spring day, Andy from Waterworld Pools received a very surprising phone call. The person on the other end of the phone was none other than Drake - international rap and R&B star. Drake was looking to have a pool installed at his Toronto mansion, and had heard good things about Waterworld. After listening to all of Drake's requirements, Andy said "no problem, I will have a quotation for the work over to you tomorrow morning". After hanging up the phone, Andy had a sinking feeling. "Drake is looking for a pool that holds 50,000 gallons of water - that is twice the size of the largest project we have completed in the past...I have no idea how I am going to quote this thing". Andy did not have a lot of time to spare in getting this quote out. He knew the project would be good for his business from the media exposure alone. He just needed to determine a way to quote the project without losing money. After thinking on the topic, Andy decided to simply get on with it, and use some numbers he already had to complete the estimate. He went back to his past records and this is what he discovered: Price of Largest Pool Project from the past five years: Labour Materials Indirect Costs Total $70,000 $50,000 $10,000 $130,000 By estimating the number of hours, etc. required, Andy determines a pool of the size Drake is after would have the following pricing: Labour Materials Indirect Costs Best Case $100,000 $70,000 $15,000 Likely Case $140,000 $100,000 $20,000 Worst Case $200,000 $150,000 $30,000 The "rule of thumb" in the industry is that an inground pool should cost approx. $5 per gallon of water it can hold. Andy now needs to complete the estimate and be sure that he will not lose money. Your tasks: 1. Using the figures above, complete estimates using the following methods: a. Analogous b. Parametric c. Three Point Estimates i. Triangular ii. Beta Show all your work for each estimate. 2. Select an estimate to pass to Drake - explain the reasons that was the best estimate to send to Drake. Source: https://www.highsnobiety.com/p/drake-pool-toronto-mansion/