CASE 2.2

The Ellis-Don Company is preparing a bid to build the new 47,000-seat Toronto FC soccer stadium. The construction must start on June 10, 2023, and be completed in time for the start of the 2026 season. A penalty clause of $500,000 per day of delay beyond April 3^rdis written into the contract. Percival Young, the president of the company, expressed optimism at obtaining the contract and revealed that the company could net as much as $5 million on the project. He also said that if they were successful, the prospects of future projects would be bright, since there is a projected renaissance in building classic ball parks with modern luxury boxes.

Technical Details for the Toronto FC Soccer Stadium

The soccer stadium is an outdoor structure with a retractable roof. The project begins with clearing the site, an activity that lasts 60 days. Once the site is clear, work can start simultaneously on the structure itself and demolition of an adjacent building site. This demolition is necessary to start a construction stage for storing materials and equipment. It will take 30 days to demolish the buildings and another 30 days to set up the construction site.

The work on the stadium begins by driving 160 support pilings, which will take 120 days. Next comes the pouring of the lower concrete bowl (120 days). Once this is done and the construction site has been set up, then the pouring of the main concourse (120 days), installation of the playing field (90 days), and construction of the upper steel bowl can occur (120 days).

Once the concourse and upper bowl are completed, work can start simultaneously on building the luxury boxes (90 days), installing the seats (140 days), installing the Jumbotron (30 days), and installing the stadium infrastructure (120 days), which includes bathrooms, lockers, restaurants, etc. Once the seats are installed, then the steel canopy can be constructed (75 days), followed by installation of the lights (30 days). The retractable roof represents the most significant technical challenge to the project. Building the roof track supports (90 days) can begin after the lower concrete bowl is constructed. At this time the dimensions of the roof can be finalized and the construction of the roof at a separate site can begin (180 days). After the roof supports are completed, then the roof tracks can be installed (90 days). Once the tracks and roof are completed, then the roof can be installed and made operational (90 days). Once all activities are completed, it will take 20 days to inspect the stadium.

For purposes of this case assume the following:

The following holidays are observed: January 1, Family Day (third Monday in February), Victoria Day (third Monday in May), Canada Day (July 1^st), Labor Day (first Monday in September), Thanksgiving Day (second Monday in October), December 25 and 26.

If a holiday falls on a Saturday, Friday will be given as an extra day off, and if it falls on a Sunday, Monday will be given as a day off.

The construction crew works Monday through Friday.