Question # 2 A summary of the facts:

1. Original project cost: $1,250,000

2. Original project schedule: 10 months

3. Planned value: $740,000 at 4 months

4. Actual cost: $770,000 at 4 months

5. Earned value: $680,500 at 4 months

6. Current monthly staff: 5 people

7. Current monthly overheads:

a. $23,000 per month for salaries,

b. $12,300 per month for project overheads, and

c. $4,900 per month for General overheads.

8. Contractual Liquidated Damages (LDs)$5,000 per day of delay

9. Assume that 1 month is 30 days Given the aforementioned facts, you are asked to find the followings:

e. What is the projected total cost Estimate at Completion (ECAC) neglecting any extra overheads?

i. If we assume cost variance was atypical (and the rest of the project will go as originally planned)?

ii. If we assume cost variance was typical (and the rest of the project will have a proportional variance)?

f. What is the projected schedule Estimate at Completion (EDAC)?

i. If we assume schedule variance was atypical (and the rest of the project will be as originally planned)?

ii. If we assume schedule variance was typical (and the rest of the project will have a proportional variance)?

g. Being the construction financial manager of the company and given the above mentioned information

i. Calculate the overall expected cost at completion (ECAC) after including the overhead costs and (LDs)

1. If we assume the cost and schedule variances are atypical?

2. If we assume the cost and schedule variance are typical?

ii. What is the overall expected cost at completion (ECAC) to maintain the finish date of the project, as per the contractual agreement, taking into consideration that the project will require the followings?

1. Adding (2) crews of B-19A at a total daily cost of $5,004 per day including all labor burdens,

2. Adding (1) crew of B-12C at a total cost of $1950 per day including all labor burdens, and

3. Adding 4 helpers at a daily cost of $265 each including all labor burdens.

h. Among the alternatives calculated within part (g), which one will you pick? and why? Students are free to discuss their choice within any scenario they decide on, taking into consideration that the most important objective is the benefit of the company.