You and your spouse have purchased a foreclosure you hope to flip for a profit. The two bathrooms had been recently remodeled by the previous owners. The three bedrooms need only cosmetic work - something you decide to undertake yourself. The majority of your budget will be used for remodeling the kitchen, the dining room, and the family room.

Since this is your first flip, you've hired an experienced home inspector to help you scope the project. You want to track costs carefully to stay as close to budget as possible and to give you an accurate baseline for similar work in future flips. Rather than doing a hierarchical decomposition of the project into various products/outcomes and then adding work package descriptors for each lowest-level product/outcome, you chose to list the components that needed work and then describe the work that must be completed for each of these components. NOTE: You've described the work that must be completed for each of the components using action-oriented phrases. For the purposes of this question, assume these are work package descriptors and that these work package descriptors are NOT decomposed into lower level elements.

Some of the work may have to take a higher priority if cost issues arise during the renovation. The higher priority work includes modifications to the electrical, HVAC, and plumbing systems, removal of two walls to provide an open concept arrangement, and common flooring throughout the kitchen, family room, and dining room areas. The remaining work and quality of finishes in the kitchen, dining room, and/or family room may have to be reduced if the cost of the higher priority work becomes an issue.

You decide to work backwards from your current list of work (shown below) to develop a WBS. You start by adding an element that represents the entire project and numbering it zero. You also decide to add several control accounts so that you can monitor and manage costs more effectively. These control accounts include:

Higher Priority Work

Lower Priority Work

Utilities and Services (Electrical, HVAC, and Plumbing)

Wall Removals

Kitchen

Dining Room (DR)

Family Room (FR)

1.Modify the WBS to add the seven control accounts listed above. DO NOT make any other changes to any WBS elements.

2.Once the control accounts are added, complete numbering the work breakdown structure in a hierarchical manner. You want your scheduling software to roll up work package costs to these control accounts.

NOTE: Your WBS must not violate any WBS core characteristics except as noted above with respect to work package descriptors.

WBS No.

WBS Element

0

Three-Room Renovation

Electrical System

Upgrade the electrical service to 200 amps

Replace the electrical panel

Rerun electrical circuits affected by wall removals

Run four new electrical circuits to the kitchen area

HVAC

Install new furnace and air conditioning units

Rerun heating and ventilation ducts affected by wall removals

Install ventilation duct for new kitchen range hood

Install ventilation duct for new kitchen microwave

Plumbing Systems

Install larger diameter water pipe from water meter to the house

Install tank-less hot water heater

Rerun water pipes affected by wall removals

Rerun vent pipes affected by wall removals

Install water supply pipe for refrigerator ice maker

Wall 1 Removal - Between Kitchen and Dining Room

Demolish existing wall 1

Install new beam 1 to accept existing structural loads

Repair ceiling in way of the new beam 1

Wall 2 Removal - Between Dining Room and Family Room

Demolish existing wall 2

Install new beam 2 to accept existing structural loads

Repair ceiling in way of the new beam 2

Flooring

Install new laminate flooring in the kitchen, dining room, and family room

Kitchen Window (Over Sink)

Remove existing window over the sink

Install new energy efficient window over the sink

Replace/repair drywall as necessary around the kitchen window

Install kitchen window trim

Kitchen Lighting

Replace existing can lights

Install new pendant lights over the island

Kitchen Cabinets, Island, and Countertops

Kitchen Cabinets

Install upper cabinets

Install lower cabinets

Install cabinet hardware

Kitchen Island

Install island

Install island hardware

Kitchen Countertops

Install cabinet countertops

Install island countertop

Kitchen Painting

Repair any remaining drywall defects in the kitchen

Paint the kitchen

Kitchen Appliances

Install range top

Install oven

Install microwave

Install refrigerator

Install dishwasher

DR Window

Remove existing DR window

Install new energy efficient DR window

Replace/repair drywall as necessary round the DR window

Install DR window trim

DR Lighting

Install new DR chandelier

DR Painting

Repair any remaining drywall defects in the DR

Paint the DR

FR Windows

Remove three existing FR windows

Install three new energy efficient FR windows

Replace/repair drywall as necessary around FR windows

Install FR window trim

FR Sliding Door

Remove existing FR sliding door

Reframe as necessary for new French door

Install new energy efficient French door

Replace/repair drywall as necessary around the door

Install door trim

FR Painting

Repair any remaining drywall defects in the FR

Paint the FR