THERE IS ENOUGH INFORMATION

THERE IS ENOUGH INFORMATION TO SOLVE THE PROBLEM

Setting: In the afternoon of the 27th workday for Pipe Pro on the job of Blacksburg, Tim Timer just finished his work on the new schedule. The schedule shows that the installation of the storm water system will be delayed. He gave the schedule to Peter, who was worried about the possible higher cost of completion. He called his old high school friend, Cassandra Costa, who works for an Architect/Engineering firm in Ohio. The telephone call went like this: Peter. Hi Cassy, it's Peter. I have a little bit of a problem on one of our jobs and... Cassy. ...and I'm supposed to help you out again. Peter: Yes, please! Cassy: I guess it has something to do with costs, right? Peter: Right Cassy: Peter, why don't get yourself a book about construction cost control? Or even better, try to take a course in this. You can't turn to me all the time. I have a job to do here myself. Peter: Cassy, how about this? I'll promise you that I will get knowledgeable with this construction cost stuff, if you can do me this last favor. Please! Cassy. That does not sound like a good deal, but I will help you out this LAST time. Peter. Thank you so much! Peter sent Cassandra a fax with the old cost estimate and the three schedules from Tim Timer. He also added the following information to the fax: "The price of the bedding material actually turned out to be $21/CY. As far as the placement and compaction of the bedding material is concerned, the price per hour for both of them is $2.50 less than the estimate. The excavation is $127/hr. That is indeed very close to our estimate. The price per hour for laying and jointing the pipes went up by $5.00. All other costs are as estimated." Table 7.1-Budgeted Cost Unit Cost Unit Item Total Cost Quantity (units) 2,000 Duration (hours) Pipe Material $41.00 LF $82,000 Bedding Material $19.00 LCY 361 $6,859 Excavation $131 HR 17 $2,227 Place Bed Material $136.40 HR 8 $1,091 Compact Bed Material $36.45 HR 12 $437 Lay and Joint Pipe $240 HR 100 $24,000 Backfill $162.50 HR 30.6 $4,973 Compaction $188.50 HR 35.1 $6,616 Overhead $65.50 HR 368 $24,104 Table 7.2 - Quantity Summary Item Quantity Pipe Material 2.000 Bedding Material 361 Unit LF LCY Excavation 3,915 LCY 361 LCY 361 LCY Place Bed Material Compact Bed Material Lay and Joint Pipe Backfill Compaction Overhead 2.000 4,035 4,035 368 LF LCY LCY HR Table 7.3 - Actual Work Completed at EOD 27 Item Quantity Unit Pipe Material 1,700 LF Bedding Material 361 LCY Excavation 3,915 LCY Place Bed Material 361 LCY Compact Bed Material 361 LCY Lay and Joint Pipe 800 LF Backfill 570 LCY Compaction 456 LCY Overhead 216 HR Table 7.4 - Scheduled Work Completed at EOD 27 Item Quantity Unit Pipe Material 2,000 LF Bedding Material 361 LCY Excavation 3,915 LCY Place Bed Material 361 LCY Compact Bed Material 361 LCY Lay and Joint Pipe 1,000 LF Backfill 400 LCY Compaction 180 LCY Overhead 216 HR Assignment 8 Imagine you are cost expert, Cassandra Costa. Use the data provided in the handout and produce an estimate of the cost of the work at completion. Calculate the following as the basis of your report: 1. The scheduled work in % complete by the end of workday 27 for each activity/item in the cost estimate, and thus the budgeted cost of work scheduled based on Tim Timer's original schedule. 2. The actual work in % completed by that time for the same activities/items and thus the budgeted cost of work performed. 3. The actual cost of work performed based on the estimate updates that Peter tells Cassandra. 4. The cost performance index as well as the schedule performance index for each of the activities/items by the end of the 27in workday. Prepare a memo summarizing the results from the report and then attach the report to the memo. Setting: In the afternoon of the 27th workday for Pipe Pro on the job of Blacksburg, Tim Timer just finished his work on the new schedule. The schedule shows that the installation of the storm water system will be delayed. He gave the schedule to Peter, who was worried about the possible higher cost of completion. He called his old high school friend, Cassandra Costa, who works for an Architect/Engineering firm in Ohio. The telephone call went like this: Peter. Hi Cassy, it's Peter. I have a little bit of a problem on one of our jobs and... Cassy. ...and I'm supposed to help you out again. Peter: Yes, please! Cassy: I guess it has something to do with costs, right? Peter: Right Cassy: Peter, why don't get yourself a book about construction cost control? Or even better, try to take a course in this. You can't turn to me all the time. I have a job to do here myself. Peter: Cassy, how about this? I'll promise you that I will get knowledgeable with this construction cost stuff, if you can do me this last favor. Please! Cassy. That does not sound like a good deal, but I will help you out this LAST time. Peter. Thank you so much! Peter sent Cassandra a fax with the old cost estimate and the three schedules from Tim Timer. He also added the following information to the fax: "The price of the bedding material actually turned out to be $21/CY. As far as the placement and compaction of the bedding material is concerned, the price per hour for both of them is $2.50 less than the estimate. The excavation is $127/hr. That is indeed very close to our estimate. The price per hour for laying and jointing the pipes went up by $5.00. All other costs are as estimated." Table 7.1-Budgeted Cost Unit Cost Unit Item Total Cost Quantity (units) 2,000 Duration (hours) Pipe Material $41.00 LF $82,000 Bedding Material $19.00 LCY 361 $6,859 Excavation $131 HR 17 $2,227 Place Bed Material $136.40 HR 8 $1,091 Compact Bed Material $36.45 HR 12 $437 Lay and Joint Pipe $240 HR 100 $24,000 Backfill $162.50 HR 30.6 $4,973 Compaction $188.50 HR 35.1 $6,616 Overhead $65.50 HR 368 $24,104 Table 7.2 - Quantity Summary Item Quantity Pipe Material 2.000 Bedding Material 361 Unit LF LCY Excavation 3,915 LCY 361 LCY 361 LCY Place Bed Material Compact Bed Material Lay and Joint Pipe Backfill Compaction Overhead 2.000 4,035 4,035 368 LF LCY LCY HR Table 7.3 - Actual Work Completed at EOD 27 Item Quantity Unit Pipe Material 1,700 LF Bedding Material 361 LCY Excavation 3,915 LCY Place Bed Material 361 LCY Compact Bed Material 361 LCY Lay and Joint Pipe 800 LF Backfill 570 LCY Compaction 456 LCY Overhead 216 HR Table 7.4 - Scheduled Work Completed at EOD 27 Item Quantity Unit Pipe Material 2,000 LF Bedding Material 361 LCY Excavation 3,915 LCY Place Bed Material 361 LCY Compact Bed Material 361 LCY Lay and Joint Pipe 1,000 LF Backfill 400 LCY Compaction 180 LCY Overhead 216 HR Assignment 8 Imagine you are cost expert, Cassandra Costa. Use the data provided in the handout and produce an estimate of the cost of the work at completion. Calculate the following as the basis of your report: 1. The scheduled work in % complete by the end of workday 27 for each activity/item in the cost estimate, and thus the budgeted cost of work scheduled based on Tim Timer's original schedule. 2. The actual work in % completed by that time for the same activities/items and thus the budgeted cost of work performed. 3. The actual cost of work performed based on the estimate updates that Peter tells Cassandra. 4. The cost performance index as well as the schedule performance index for each of the activities/items by the end of the 27in workday. Prepare a memo summarizing the results from the report and then attach the report to the memo