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1.7 PMBOK Connections (5th Ed.) 11.1 Plan Risk Management 1.8 Case Study (Use for Chapters 1, 2, 3, and 4) RPO Construction has been hired to build a custom-made exec- utive home in Vancouver, Washington. Two acres of property have been purchased on the banks of the Vancouver Harbor by a retired executive and his wife for the location of their new custom home. The single-family residence will be an 8,500 square feet, two-story struc- ture consisting of wood frame, cement slab foundation, and tile roof. There will be a three-car garage attached, fully landscaped front yard with circle-around driveway, patio, and deck off the rear of the house overlooking the harbor. The deck will include an infinity pool and oversized spa with outdoor kitchen appliances. A dock with a boat- house will be constructed at the water's edge with the patio decking connected by a wood staircase. Concerns in the house construction consist of pouring the slab foundation during the winter season, difficulty in location of the sep- tic sewer system, and obtaining permits that allow for the creation of a dock and boathouse. The owners of the house have sold their cur- rent home and will be closing escrow shortly, requiring them to stay in a hotel temporarily. They have given the construction company the completion date so they can minimize the cost of their hotel stay. The construction company has told the homeowners it will take six months to finish their home if there are no delays due to poor weather, resolv- ing the location of the septic system, and possible delays in obtaining permits. The homeowners have agreed to the schedule. If everything goes as scheduled, the house will be finished on time for the home- owners to move in. Details of cost are as follows: slab floor $32,000, total risk $9,000; septic sewer system cost $18,800, total risk $5,100; dock and boat- house cost $82,000, total risk is $11,000. Contractor agreed' to a late completion penalty of $2,500 per day each day the project extends beyond the completion due date. 2.10 Case Study Questions (Use Case Study in Chapter 1) 1. Use the activity information checklist to gather information concerning work activities. 2. Based on the information gathered, identify potential risks. 3. Create a basic risk register and record risk information. 4. Categorize risks based on the three main categories of cost, Dann schedule, and quality of deliverable