CEE 4100 Group Homework 6 Scheduling and Retainage Group Number: .. Last Name: .. First Name: ..

.. Last Name: .. First Name: .. Last Name: .. First Name: .. Last Name: .. First Name: .. Last Name: .. First Name: .. Last Name: .. First Name: .. TOTAL POINTS: .. Due date November 27, 2013, 3 p.m.. 100 points total. This homework counts for 7.5% of the total grade. Absolutely no late submission. Neatness counts! One complete set of the solution needs to be turned in. Please initial behind each name if team member has actively participated in the homework. Use the following notation: ESD Duration EFD Activity Name LSD Float LFD Question 1 PERT (15 points) Given the data below: a) Draw the preceding diagram and find the critical path using tm. b) For the activities on the critical path only, based on a PERT analysis, what is the expected project duration? c) What is the probability of completing this project in 70 days? Activity 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Sum ta 0 1 2 10 9 3 3 7 4 2 4 1 2 1 4 1 1 2 tm 0 2 3 11 10 3 8 8 7 3 7 3 3 2 6 3 2 3 tb 0 4 5 12 12 14 9 11 8 5 8 3 4 3 7 4 3 4 Followed by activity 2 3, 6 4 7 8, 9, 10 9 10 11, 17 11 14 15 18 17 18 te te te

Question 2 Gantt chart, CPM, Cost loaded schedule (20 points) Given: Activity B must start 1 day before activity A ends. Activity C has a lag of 1 day (F/S) from the previous activity. Activity Total Cost [$k] 9 6 12 10 5 6 8 3 Number of workers needed per activity and day 2 3 7 8 4 3 2 8 Duration [days] 3 2 4 1 5 3 3 6 Activity following C, D E F, H F H H H Free float

A B C D E F G H a) b) c) d) e)

Develop the Gantt chart for the activities listed in the table for the shortest possible project duration. Calculate the free float to each activity. Write the free floats in the last column of the table above. Find the critical path (CP) by calculating and drawing the precedence diagram. Highlight the CP graphically. Find the cost per day and plot the cumulative project cost vs. time curve for this project. Allocate the labor and identify conflicts if maximum 10 laborers are available. Suggest one workable solution and if possible, without extending the project deadline! Draw your solution into the Gantt chart.

Question 3 Line-of-Balance (15 points) a) Draw the LOB diagram for the study representing the beginning of month 3. Each month consists of 20 working days. b) Indicate over capacity and under capacity using the given field measurement of activities completed.

15 14 13 12 11 10 9 8 7 6 5 4 3 2 1

Under capacity Over capacity

Control Point i

Current Field Measurement

Control Point i 7 6 5 4 3 2 1

START

FINISH

Question 4 CPM (20 points) a) Develop the precedence diagram and indicate the critical path. b) What is the shortest possible duration of the project using the following information?

Activity Grading Granular Filling Run-In Electrical Procure Building Compressor Foundation Excavate Butane Butane Storage Connect Cooling Bolts and Plates Slab and Footings Piping Systems Set Compressor Electrical to Compressor Erect Building Wire Building Set Control Panel Connect Piping Test and Clean

Symbol GR GF RE PB CF EXB BUS CC BP SF PS SC EC ERB WB SCP CP TC

Duration (Working Days) 6 5 8 6 2 2 6 3 2 6 7 3 8 7 4 6 9 4

Activity following CF BP SF, EC, CC ERB CC SF, CC CC PS SC SC, CP ERB, EC EC SCP, ERB WB CP, TC, SCP CP, TC TC

Question 5 Precedence Network, Cost Control (10 points)

12,000 8,000

Cost/day

EST

EFT

LST

LFT

Total Float

12,000 8,000

According to a precedence diagram, plot the daily cost per task and the cumulative cost curve. If you need, use a separate/new sheet.

d. Management has stated that the project job cost can not exceed $6,000 in any one day. Can the project be completed under this constrained without delaying the completion date in Part A of this exercise?

Question 6 Gantt Chart (10 points) Develop the Gantt chart for the following network. Use the diagram below and indicate in the Gantt chart the float value for each activity that is not part of the critical path by marking the corresponding cells of an activity than can be shifted with - - - - -. ESD Duration EFD Activity Name LSD Float LFD

Activity W K

Question 7 (10 points):

S-Curve:
Definition: S-Curve: Direct Cost: Provides estimated progress and costs of the life of a construction project. Cost that can be directly related to work activities, e.g. machinery, materials, personnel, travel related to a work task, etc. Indirect Costs: Costs that can be billed to many work tasks or projects, e.g. telephone, headquarters, and tasks that are necessary to operate the work.

Given information: Progress payments are billed at the end of a month and the owner will transfer billed amounts minus any retainage to the contractors account 30 days later. This allows the owner to ensure that the contractor builds first, and then gets paid later. For the contractor this has a few consequences: Some work might need to be financed, e.g., from a financial institution like a bank. The prime rate (interest rate) depends on the past history of the contractor, e.g., being a reliable contractor that performs the promised work, however, contractors are often in the high risk group that causes higher interest on loans. The goal is to minimize the borrowing/lending of money and to optimize the cash-flow, e.g. to purchase and install materials before getting paid for them. n number of activities n number of months as duration Start and finish times of each activities Direct costs of each activity Indirect cost of each activity (usually a fixed amount) Assume a profit and contingency rate (MARR) on the project cost. As an incentive for the contractor to finish the job, the owner decides to retain 10% of the monthly project cost until half of the project is completed. The retainage is deducted from the progress payment on the first half of the project cost. Formula: Pay = (1+MARR) (indirect + direct expense) Retainage [(1+MARR) (indirect+ direct expense)]
Example: MARR=15%, Retainage=10%, Pay = (1.15) x (indirect + direct expense) 0.1 [1.15(indirect + direct expense)]

Task A Task B Task C Task D Task E Task F For all tasks MARR

Total direct cost per task $6,000 $20,000 $10,000 $10,000 = 15%

Indirect costs $3,000

Schedule Month 1 and First Half of Month 2 Month 2 and Month 3 Month 3 Month 3 and Month 4 Once per month

Questions: 1. Develop a chart and table that includes the relation of Direct Cost, Indirect Cost, Total Monthly Cost, and Cumulative Monthly Cost. 2. Determine the Bid Price (Project cost incl. profit and contingency). 3. Draw the Expense Curve. Draw the Revenue Profile. 4. Highlight the area where financing (e.g., a loan) is needed. 5. Illustrate a Curve of your choice that demonstrates Mobilization Pay (Money received before construction work can start; complex and risky projects that require upfront payment).

Solution: Task/Month A B C D E F Direct Cost Indirect Cost Total Monthly Cost Cumulative Monthly Cost Profit Bid Price In $1,000: Bill Month 1 = Bill Month 2 = Bill Month 3 = Bill Month 4 = Bill Month 5 = Bill Month 6 = The last payment includes the remainder of the profit.
300k Expense Curve (S-Curve) Revenue Profile Financing Needed Mobilization Pay (Example)

Total

Cumulative: Payment Until end of Month 2 = Payment Until end of Month 3 = Payment Until end of Month 4 = Payment Until end of Month 5 = Payment Until end of Month 6 = Payment Until end of Month 7 = Payment End of project =

250k

200k

150k

100k

50k

Send Bill at end of each month Get paid 30 days later 1. Month 2. Month 3. Month 4. Month 5. Month 6. Month