An engineer failed to finish its building construction contract on time. With this, a penalty of P10,000
Question:
An engineer failed to finish its building construction contract on time. With this, a penalty of P10,000 will be paid for each day that passes beyond the date of contract. According to the engineers estimate, if the construction will continue with the same number of workers, the project will be finished 30 days after the contract date. But the engineer also has an option of hiring more workers to hasten the construction process. Every additional worker, the engineer has to pay P3,000 per day and every 3 additional workers the construction period will be lowered down by 1 day. But, the engineer can only hire 21 workers. If you are the engineer, what method are you going to follow so as to incur a lesser amount of extra construction cost? Just pay P10,000 per day for 30 days? Or just hire additional workers to lower down the construction time?