Questions:

Prepare a budget for the Virginia condos based on the project plan and provide financial analysis.

CASE 1: VA Condos

Clark Construction is building a set of new condominiums in the Virginia Beach. The project

consists of eighteen buildings, each housing twelve condominiums. Each building will border the

Virginia Beach Golf Course designed by J. M. Architects. The minimum price for a condominium unit

is $300,000, and buyers expect a high-quality project. Response to the initial promotion was so great

that CLARK Construction pre-sold all 216 units based solely on an architect's conception and

schematic plans of the project. One reason for the quick sell-out may have been the -YOU CAN MOVE

IN BY OCTOBER- campaign. As part of this campaign, CLARK promised rebates of $20,000 cash

to all 216 buyers if all the facilities, buildings, and other amenities were not completed by October 15.

As of mid-January, the project is well underway. The following PERT/CPM network details the

precedence for the activities of the tasks remaining to be completed in the project. R and T will be

subcontracted.Three-time estimates (in days) for each of the other activities needed for each condo have been

determined and are given in the following table (Note: all the condos will be constructed concurrently)

You are required to use a full day as the smallest unit for scheduling the activities:

ACTIVITY CODE AND DESCRIPTION Estimated Activity Duration (a, m, b) Dependencies optimistic most likely pessimistic Al. Land measurements 5 8 11 B2. Layout of measurement stakes 7 12 17 A C3. Analysis of surrounding environment 10 17 24 D4. Building of foundation 12 22 32 B E5. Approval of construction papers 6 13 20 C F6. Layout of building framework II 15 19 C G7. Gas line instalment 9 18 27 C H8. Electrical wiring 25 27 29 B, G 19. Interior plumbing 18 20 22 E, B J10. Wall construction 12 25 38 D, H K11. Insulation 10 23 36 I, F L12. Drywall 15 20 25 F, I M13. Roofing 3 10 17 K, J N14. Restaurant construction 25 40 55 G 015. Swimming pool 9 20 31 J, K, L, G P16. Fencing 6 10 14 J, K, L, G Q17. Telephone lines 12 22 32 M, O R18. Completion of underground M, O $19. Snack bar 10 20 30 N T20. Stream building N U.21 Outside lighting 8 12 16 P, S V22. Parking lots 3 5 7 P, S, Q. W23. Drainage construction 5 10 15 P, S, Q, T X24. Safety inspection 15 21 U, W Y25. Landscaping 6 24 42 R, V Z26. Final permits/releases 10 15 20 X, Y