Case Study: 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 DESCRIPTIONEstimated Activity Duration (a, m, b) Dependencies
optimisticmost likelypessimistic 
A1. Land measurements5811
B2. Layout of measurement stakes71217A
C3. Analysis of surrounding environment101724A
D4. Building of foundation122232B
E5. Approval of construction papers61320C
F6. Layout of building framework111519C
G7. Gas line instalment91827C
H8. Electrical wiring252729B, G
I9. Interior plumbing182022E, B
J10. Wall construction122538D, H
K11. Insulation102336I, F
L12. Drywall152025F, I
M13. Roofing31017K, J
N14. Restaurant construction254055 G
O15. Swimming pool92031J, K, L, G
P16. Fencing61014J, K, L, G
Q17. Telephone lines122232M, O
R18. Completion of underground   M, O
S19. Snack bar102030N
T20. Stream building   N
U.21 Outside lighting81216P, S
V22. Parking lots357P, S, Q,
W23. Drainage construction51015P, S, Q, T
X24. Safety inspection91521U, W
Y25. Landscaping62442R, V
Z26. Final permits/releases101520X, Y

Activity R, the underground sewer activity, consists of installing pipes and connections to join all eighteen buildings to the main city sewer system. CLARK Construction selected the Comey Construction alternative for this activity.

Comey Construction has submitted a bid of $300,000 for the design and construction of the required sewer project. It estimates a most likely completion time of 25 days, with a difference of plus or minus three days for the optimistic and pessimistic time estimates.

Activity T, the stream building activity, involves building a stream that runs throughout the project and connects the western and eastern boundaries. CLARK has selected the Lakeport Inc. alternative:

CLARK has received a bid of $400,000 from Lakeport, Inc. to design and build a meandering stream that will most likely be finished in 30 days, give or take five days.

Each activity is estimated to need 3 people with a cost of $100/day per person. The indirect cost of the project is estimated to be $3500/day. Assume that today is January 14, and that all the work is to be done on a five-day-per-week basis including holiday periods.

Prepare a report for this project within which you address the followings:

• A1-Develop tentative (preliminary) target start and completion dates for each activity. A Gantt Chart, list of critical activities, and a tabular schedule is required.

• A2-Assuming unlimited resources optimize the schedule. •

B-Give a date by which you are 90 and 95% and 99% sure that the entire project will be completed based on your preliminary schedule. Complete analysis and discussion are needed.

  • Answer only A1, A2, and B questions within a business report. In your report, make sure not only all the questions are answered and addressed explicitly but also critical evaluation of the situation and the analysis method used to answer these questions are addressed.

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