\fProject Case Background: Delta Construction LLC is a general contracting company. The company performs contracted work mainly in the area of engineering and heavy construction. The company executes multiple projects simultaneously at any given time and each project is managed by a project manager (YOU in this case as a project manager working there). Most contracts are awarded to your company on the fixed cost basis contract and on "design- bid-build" basis procurement method. This means that projects executed by your company can only be profitable by completing projects on time and within budget with a heavy penalty on late completion. However, in construction projects, cost and or schedule overruns could occur due to a variety of internal and or external factors. These costs or schedule overruns can quickly wipe out profit margins and may result in a loss. Project losses generally are the result of problems of a few activities in a project which may impact other activities and hence, the entire project may be impacted negatively. It is not possible to avoid all schedule or cost overruns (like schedule overruns due to severe weather conditions), however, proper project monitoring can reduce the impact of these overruns. Recently your company has been awarded a contract by a mining company for building a community centre on a fixed cost "design-bid-build" project Project Case Data: The following Data are presenting the project case Table 1: is the project work packages and tasks (outline WBS) Table 2: is the schedule plan baseline Table 3: is the cost plan baseline Table 1: Project Main Task and sub-tasks ID Task name Duration Predecessor Tasks (weeks (w) Assume F-S relationship / days between the tasks. (d*)) A. Site Development Site Survey 1 w Project Start Site Cleaning 2w Waste Removal 5d Milestone 1 0 B. Foundations Level Ground 10d Dig Trenches 10d 7. Sewage Connections 10d 6 8. Electrical (to mains 10d 6 9 . Gas (to mains) 5dID Task name Duration Predecessor Tasks (weeks (w) Assume F-S relationship / days between the tasks. (d*)) 10 Pour Concrete 10d 7.8.9 11. Brick Foundations 5d 10 12. Milestone 2 11 C. Walls + Roof 13 Brick Walls 10d 12 14. Wooden Rafters 10d 13 15. Windows Preparation 15d 13 16. Lay Roof Tiles 15d 15 17. Milestone ? 16 D. Interiors 18. Electrical Wiring 15d 17 19. Pipes and Plumbing 15d 17 20 Doors 15d 17 21. Windows Installing 10d 17 22. Floorboards 5d 21 23 Milestone 4 20. 22 E. Bathroom and Kitchen 24 Walls 10d 23 25. Bathroom Fittings 10d 24 26. Bathroom Tiling 50 25 27. Bathroom Flooring 5d 26 28 Kitchen Fittings 5d 27 29 Kitchen Slate Flooring 10d 28 30. Milestone 5 29 F. Finish 31 Plasterboard Walls 10d 30 32. Painting 10d 31 33. Milestone 6 14,18,19,32 * 5d equals 5 days equivalent to one working week(1 w) UJTable 2: Percentage of Tasks Planned to be Completed Each Month Main Tasks Percentage Completion for each month May Jun July Aug Sep Oct Nov Dec Jan A. 100 B. 7084 30% (finished) C. 80% 20%% (finished) D. 100% (finished) E. 50% 50% (Finished) 100% Table 3: Budgeted Planned Cost Budgeted Cost Task Of Work Months Scheduled May Jun July Aug Sep Oct Nov Dec Jan A $75,000 $75,000 B. $60,000 $42,000 $18,000 C $120,000 596.000 $24,000 D. $40,000 $40,000 E. $60,000 $30.000 $30,000 $20,000 $20.000 Total ? ! ? Cumulative ? 7 ? ? ? The Problem: The project was started as per plan. Working hours and days are $ hours Monday to Friday. Work started at a slow pace in the first month with substantial delays in mobilisation of workers. In the middle of June, a severe thunderstorm disrupted the construction site. More than two weeks of work time was lost in June tasks due to the flooding of the site caused by the storm. By the mid of July, another problem surfaced related to the quality of work performed by a sub-contractor. The foundation sub-contractor failed to meet the standards set in the contract. About 20% of the work completed in July by this sub-contractor had to be redone. This resulted in delaying some of the activities, but the project manager and the team did not update the schedule and cost baselines. 4In Sep, the project manager realized that the sub-contractor was having problems in procuring raw material. A meeting with the sub-contractor revealed that the sub-contractor was having problems with labour and finances. The project manager did not monitor the project performance and progress since the start of the project, and the project manager now is not yet sure of the problem. Currently, hiring a new contractor is not an option. The Client requested a status report from the contractor. A new project manager from the Client side took the place of the old project manager and first thing he asked for is a status report from you for End of Oct. Table 4: is Main Tasks Percentage Cumulative Completed as reported by the project team end of Oct Table 4: Main Tasks Percentage Cumulative Completed by end of Oct. Task Monthe 9% Cumulative May Jun July Aug Sep Oct completed by end Oct % Complete each 1009% 100% 100% 100% 100% 100% month 30% (finished) 6 Complete 100% 100% 100% B each month 20% 709% (finished) 100% % Complete each 309% 50% 809% C month % Complete each 10% 10% month Table 5: is Actual spending (project costs) as reported by the project team end of Oct Table 5: Main Tasks' Actual Cost incurred per month by end of Oct Task Months Month wise May Jun July Aug Sep Oct A Actual Cost $75,000 345,000 Actual Cost $25,000 $50,000 $40,000 Actual Cost $60,000 $30.000 $20,000 D Actual Cost $20,000 LA