QUESTION 1 (4.00 points)

You are the president of Silver Fiddle Construction, which specializes in building high quality, customized homes in the Grand Junction, Colorado area. You have just been hired by the Czopeks to build their dream home. You operate as a general contractor and employ only a part time bookkeeper. You subcontract work to local trade professionals. Housing construction in Grand Junction is booming. You are tentatively scheduled to complete 11 houses this year. You have promised the Czopeks that the final costs will range from US$ 450,000 to US$ 500,000 and that it will take five months to complete the house once groundbreaking has begun. The Czopeks are willing to have the project delayed in order to save costs.

You have just finished a preliminary scope statement for the project. You are now brainstorming potential risks associated with the project.

Project objective

To construct a high quality, custom home within five months at a cost not to exceed US$ 500,000.

Deliverables

A 2500 square feet, 2 bath, 3 bedroom, finished home.

A finished garage, insulated and sheetrocked.

Kitchen appliances include range, oven, microwave, and dishwasher.

High-efficiency gas furnace with programmable thermostat

Milestones

Permits approved July 5

Foundation poured July 12

"Dry in"- framing, sheathing, plumbing, electrical and mechanical inspections

Final inspection November 7

Technical requirements

Home must meet local building codes.

All windows and doors must pass NFRC class 40 energy ratings.

Exterior wall insulation must meet a "R" factor of 21.

Ceiling insulation must meet an R" factor of 38.

Floor insulation must meet an R" factor of 25.

The garage will accommodate two cars and one 28 feet Winnebago.

Structure must pass seismic stability codes.

Limits and exclusions

The home will be bult to the specifications and design of the original blueprints provided by the customer.

The owner is responsible for landscaping.

Refrigerator is not included among kitchens appliances.

Air conditioning is not included, but the house is prewired for it.

SFC reserves the right to contract out services.

Customer review

"Bolo" and Izabella Czopek

Present an RBS for the project. (1.00 point)

Analyze risks qualitatively. (1.50 point)

Come up with a complete risk management plan for the 5 most critical risks of the project. (1.50 point)