Case Study 2 Construction
Fred’s Sheds
Fred Smith, the founder and chief executive of Fred’sSheds, received a phone call one afternoon from a local farmer, MrJones, requesting a quote to design and build a large storage shedon his property. Fred asked Mr Jones what size and type of shed hewould like, when he wanted work to commence, and when he wanted itcompleted.
Mr Jones told him that he required a large shed, bigenough to store his tractor and utility vehicle, and spaces for aworkbench, tools and fertilisers.
He also specified that the shed must have power, waterand a toilet. He requested that the shed be made of high qualitymaterials, because twice in the previous ten years some of theother sheds on his property had been damaged by inclement weather,costing him many thousands of dollars in repairs.
Mr Jones wanted work to commence in 6 week’s time andwould like the job completed no more than 3 weeks after that so hewould have a place to store his vehicles before the winter rainscame.
Mr Jones asked Fred to come up with a design and quoteto build his shed and asked him to present them to him at a meetingat his house in a week’s time.
He told Fred that he was obtaining three quotes fromthree different builders, and that he would select his preferredbuilder based on four criteria.
These were quality, the ability to start and finish ontime, and cost.
Mr Jones said he would like to spend no more than$40,000 on the shed, but would consider alternate proposals thatwere a little higher in price if they could exceed his minimumevaluation criteria.
As soon as Fred hung up the phone his mind started tothink of all the different tasks he would need to do to win andcomplete the job. Having built many sheds before, he was confidenthe had the project management skills to build a shed that met MrJones’s extensive criteria. He jotted down some of his thoughts ona notepad so that he would not forget anything.
First of all, Fred knew he would have to come up with awinning design, so he would need to put his designer, Karen, on thejob of coming up with some innovative designs.
Fred would also have to source higher quality buildingmaterials than he usually used because, although Fred always usedgood materials, he thought he would try to use the best possiblematerials, if it was cost effective, to give him the edge inmeeting Mr Jones’s stringent evaluation criteria over his twocompetitors.
Fred also knew that he would need to plan the humanresources necessary to complete the job in the timeframe required.Some of his other construction projects were nearing completion, soit would not be too much of a problem getting some of hisconstruction workers to start in 6 weeks’ time. However, Fred wasnot sure about the availability of his subcontractors, Eddie theelectrician, Bob the plumber, Gary the glazier and Tony his fencingcontractor and odd job man, because business was booming and theywere all very busy.
If he was successful in winning the contract, Fred knewthat there would still be lots of work to be done. After signingthe contract, he would need to submit a Development Application andconstruction certificate to the local council and await theirapproval.
Mr Jones’s final selections for colour and style of shedmaterials would need to be finalised and a deposit received priorto commencing work.
Once all that had been accomplished, Fred and his teamof four would have to prepare the site for construction. This wouldinvolve performing underground cable service checks, and perhapscontracting a surveyor to locate existing boundaries as the shedwas going to be built close to the boundary with Mrs Mitchell’sneighbouring property.
The site would need to be cleared, temporary sitefacilities such as a toilet, site fencing, power and water wouldhave to be established, the site set out and the formwork built.Following this, the site would be excavated.
While the excavation was taking place, Fred would needto remember to book a council inspection for the formwork prior toconcreting, as well as booking the concrete truck, a date for theshed to be delivered, a date for the shed installation team to putthe shed into place, and dates for his subcontractors to come andinstall power and water.
After pouring the concrete and finish, his team wouldneed to strip the formwork. At this time Fred could invoice MrJones for a progress payment as this represented a milestone in theproject. Following this the shed could be delivered andinstalled,
Eddie the electrician could be called in to connect themains power, Bob the plumber could connect the water and installthe toilet and Gary the glazier could install the windows. Whilethey were busy doing that, Fred and his team could start clearingthe site, removing any rubbish and the temporary siteamenities.
Once all these tasks were accomplished, the job would beat practical completion. Fred would then meet with Mr Jones,present him with a final bill and handover the keys to the shed.Fred smiled to himself feeling confident that he would beat his twocompetitors to the job and thinking that he would soon have anothersatisfied customer.
Complete the project budget in the resources and costtemplate.
******** I need just a simple example
Resource and Cost Template
INCOME: | Inc GST |
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Total Income | |
RESOURCES REQUIRED & EXPENSES: | Inc GST |
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Total Expense | |
Contingency (10%) | |
TOTAL: | $40, 000 |
Project Client: | Version: 1 |
Mr Jones | Date: |
Project Manager: | Your Name |
