MGMT 505- Project Management Fundamentals
Silver Fiddle ConstructionStacey R. CookMGMT 505- Project Management FundamentalsMarch 25, 2013Dr. Darrin DeReusAbstract Silver Fiddle Construction is accepting a new project for the Czopek family, in which this project happens to be their “dream home”. Therefore, the details from Silver Fiddle Construction really need to be able to be taken into consideration, and the company needs to be able to provide the best possible product for their consumer. Risks really need to be measured and prepared for (as best as the company can possibly do) as well as ensuring that Silver Fiddle has the appropriate supplies, time and efficient funds to complete the project. However, if the risk is not measure correctly then that outcome could be really detrimental to the reputation of the company. IntroductionSilver Fiddle Construction (SFC) specializes in building high quality, customized homes in the Grand Junction, Colorado area. CITATION Lar112 \l 1033 (Larson & Gray, 2011). “Bolo” and Izabella Czopek have hired the construction company to build their “dream home”. As a general contractor, SFC only employs a part time book keeper for the company. SFC is expected to complete 11 houses this year alone, along with the Czopek home. SFC had estimated the completion of the home to be complete within 5 months (once the ground breaking of the project has taken place) and the total cost of the home to range from $450,000 to $500,000 CITATION Lar112 \l 1033 (Larson & Gray, 2011). However, there may be a lot of risk involved with this scenario and possible drawbacks to the exact promised completion time line of this project. Luckily, the Czopeks’ (“Bolo” and Izabella) were more than willing to have patience with the project, so this would allow for the project to be more affordable for them. There have been past incidents where construction companies such as SFC, had made many promises to their customers, and have failed. If it was not the promises that were made, then the companies may have lacked supplies or even short cited the amount of time needed to ensure that the project was completed correctly, provided durability for the customer, and even lacked the satisfaction so needed from the customer to the company that was involved in the project itself. SFC really needs to be able to separate themselves as a company from those construction companies that may have been a part of such actions, whether it is court action or the potential loss of a customer based on their lack of performance while completing the project. Therefore, the SFC project manager must be able to determine the risk involved with this project and communicate the potential risks with the customer to ensure that there is always an open line of communication amongst the company and the two individuals as customers. SWOT Analysis:Strengths:ExperienceFlexible CustomersOpportunities:Possibility to establish new customer base if current customers are satisfied11 other homes to complete Weaknesses:Hiring other contractors for other tradesPart time book keeperThreats:Over extend financesTime constraintsProject Objective The project objective is to construct a high-quality custom home within five months at a cost not to exceed $500,000.Requirements for the Czopeks’ Dream HomeNot only did SFC promise the Czopeks that their home would be completed within 5 months of the ground breaking, there were certain items that the couple requested for the final touches to their home. Such as the home would measure 2,500 square feet include a 2.5 bath, and 3 bedrooms. The garage would be insulated and require accommodation of two cars and one 28 foot Winnebago. The kitchen appliances such as range, oven, microwave and dishwasher were also part of the requirements of the home; however, the refrigerator would not be included, as that would be a purchase for a later undisclosed date. Finally, there was also a request for a high efficiency gas furnace with a programmable thermostat to accompany the furnace system. CITATION Lar112 \l 1033 (Larson & Gray, 2011)Milestones of the Home ProjectSFC estimated the time of completion for this home project to be 5 months from the groundbreaking. So, it is important that the company was able to get the required permits approved (July 5th) in order for ground breaking and the construction to begin for the home. Also, if those same permits were not approved, then the concrete for the foundation would not have been able to be poured, which could really push back the date in which was originally promised to the Czopeks. So, getting the appropriate permits approved to have the project process begin is a really big milestone, not only for SFC, but for the Czopeks as well. Technical Specifications Technical specifications are important for the home project to be able to be a success, and the satisfaction of the customer to also a factor. Therefore it is important that the SFC is aware of the local building codes that are required in Grand Junction, Mesa County, Colorado. Building Group 1Plumbing Group 2Mechanical Group 3Electrical Group 4100 Footer220 Underground34 Gas Piping & Test460 Temporary Pole102 Foundation222 Rough In342 Boiler/Furnace462 Rough In104 Slab224 Sewer343 In Floor Heat464 Temporary Service106 Frame226 Waterline344 Hot Water Heater466 Underground108 Insulation232 Final346 Venting470 In Slab Rough In110 Fireplace234 Manufactured Home348 Mechanical Duct/Fire Dampers472 Ceiling Rough In111 Reroof350 Gas Fireplace474 Soffit Rough In112 Structural Steel352 Wood Burning Appliance476 Final113 Fire Wall354 Hood System478 Manufactured Home114 Masonry/Grout356 Final115 Stucco Lath358 Manufactured Home116 Final CO360 AHU Smoke Test118 Manufactured Home120 Set BacksFoundation Certificate*Zoning Code Group 600 Inspection Code*Commercial Final Back Flow Inspection*Fire Dept Codes Group 5*Plumbing Contractor:Mechanical Contractor:Electrical Contractor:The chart is used for the final inspection process for the home CITATION Mes12 \l 1033 (Mesa County, 2012), although SFC has built many homes within Mesa County, Colorado, it is important that with such a short time line for completion of the Czopeks’ home that these codes are in complete regulation. The required regulations that need to be complied with for the home such as the exterior wall insulation and the ceiling wall insulation is another form of inspection that is conducted by the building inspectors of Mesa County as well. If there are violations to these required regulations, then the home may have a potential to fail the inspection, which would create a set back of the actual completion date that had already been established by SFC and SFC had promised the Czopeks that their home would be completed by that time. Therefore, the customer may not necessarily be too please about the outcome if a failure were to arise with the home project. The windows and doors of the home will not only have to be inspected by the building inspector as well, but also have to meet the requirements of the National Fenestration Rating Council (NFRC). The NFRC is actually a label on a product that can either tell a consumer whether or not the product that they are going to purchase will either meets or exceeds building energy codes which can in the long run save a customer a lot of money down the road by choosing the appropriate product to place in their home to help increase energy efficient utility bills. CITATION Nat12 \l 1033 (Council, 2012). The technical specifications for the windows and the doors in the home should meet the requirement of the NFRC class 40. The energy codes are established by the Department of Energy, and can either be adopted from legislative or regulatory action. CITATION Nat12 \l 1033 (Council, 2012)Finally, seismic stability for the structure of the home is important. Based on where the home will be located, and the amount of mountainous scenery that surrounds the home, it is important that the home is able to be structurally sound in any unforeseen earthquake activity. Therefore, the home must meet the requirements of the county in terms of seismic stability. The codes are again determined by the county itself. Limits and Exclusions to the projectThe Czopeks have provided SFC with the details and specifications in which they want their home to be built. The couple also provided the blue prints for the home. This will give SFC the tools needed to ensure that the home is built to the standards in which the customer would like. This also saves the customer money in the long run because SFC would not necessarily have to contract an Architect to provide the blue prints for the home. However, SFC would not be able to deviate too much from the blue print plan, so the work in building the home will have to be almost meticulous to what the customer has already established in the blue print of the home. The Czopeks have opted to landscape on their own, which can allow for them to have funds later in the future doing so could actually help SFC because there would be less to damage in the process of building. If the couple decides to wait until after their home is built this could allow for more creative ideas for the couple to come up with if they are able to visualize how they would like their landscaping for their new home to look. Although almost every appliance will be placed inside the home, the refrigerator was an appliance that will not be in the home. Along with the refrigerator not being placed in the home, the home will also lack the air conditioning unit; however, the house will be prewired for the unit if the owners decide that they would like to be able to have an air conditioning unit in the future to be placed in the home. SFC will contract out the mechanical, plumbing and electrical portion of the project. Although this may help the company construct the home in a timely manner, the contractors that they choose to hire to complete the projects mentioned above should be notified well in advance to ensure that they are readily available once their services are required. So that way, the home can be completed and inspected by the specified and agreed date by the Czopeks and SFC. Risk Assessment of the Project There are many risks involved with any project however, the main issues with this project are:Time Constraints- SFC promised that the construction for the home would only take 5 months, however, there is a potential for setbacks and delaysExceeding the budget- the budget can be a great estimate for the customer, however, it is up to the company who is completing the project to ensure that they maintain the allotted budget. The contractors outside of SFC- SFC is able to hire outside contractors to fulfill certain trades in which SFC may not necessarily be professional in, therefore SFC needs to be able to ensure that the contractors are ready to work when they are needed too.The wiring for the AC unit- It is important that all of the wiring within the home is functioning properly, however, it may be quite difficult if the equipment is not readily available to able to test that the wiring will work once the customer decides to purchase an AC unit.Customer satisfaction- it is important that the customer is satisfied, and in this instance (as well as with any project) the customer happens to be trusting the construction company to build their dream home, so it is important that the dream home remain that, and not the “money pit”.Risk Assessment FormRisk EventLikelihoodImpactDetection DifficultyWhenTime Constraints3512 months after ground breakingExceeding budget2533 months after ground breakingHired Contractors3513 months after ground breakingWiring of nonexistent AC Unit3514 months after ground breakingCustomer Satisfaction351After project is completeRisk Response MatrixRisksResponseContingency PlanTriggerResponsibleTime Constraints (Schedule)Mitigate: Review Schedule daily with those involvedHire more resources3 Months before deadlineProject ManagerExceed BudgetMitigate: Ensure labor does not work overtimeSet aside emergency fund for projectBudget exceeds $300,000Book keeper, Project Manager and PresidentOutside contractors not working on assigned tasks right awayMitigate: Before starting the construction project, ensure to contact the appropriate contractors for each jobHave back up contractors to do the same tasks as the original contractors to ensure that the house will be completed on time. Before ground breaking to start constructionProject ManagerTechnical Risks with the wiring for the future AC unitMitigate: Test the wiring for the unit by using a sample unit to ensure that an AC unit will workIncrease team size to resolve any issues found with product during testingJust installing the wiring for the potential unit for an AC UnitProject manager and contractorCustomer SatisfactionMitigate: Customer Service follow up construction is completeIf customer is unhappy, find out why and see how the company can help correct the issueComplaints from CustomerPresident, Project Manager and Construction TeamCustomer EvaluationThe Czopeks are the customers and they will evaluate the project (their dream home) once it is complete. The couple had already established that in order to reduce costs, they would be willing to have the project delayed a bit. However, a good project manager would want to be able to provide great service to the customer, and be able to still save them money without having to delay the project for them. Also, a customer would be able to notice if the company would try to cut corners, so to speak with the project. Therefore, it is important that SFC adheres to the regulations of the county, and also adheres to the requests and the requirements of the customers as well. So, cutting corners would not be an option. Contractors Who Didn’t Make the CutA couple decided to have their house undergo a major renovation, and they were confident that they could possibly avoid delays and the possibility of poor workmanship with this renovation; however, for them that was not necessarily the case. CITATION Cat92 \l 1033 (Catalano, 1992). Vicki Cronacher decided that she really wanted to increase the size of her master bedroom, and update the kitchen. Vicki and her husband Warren hired a contractor that their daughter in law had recommended. A month after the decision to renovate, the architect had provided blue prints that really had the couple excited about the remodel of their home, and they decided to use the plan that was provided. The target date for the ground breaking was November 1st, and the end date was for May 1st, however, that was not the case, as the project had been delayed. A zoning variance was needed at the beginning of the project, because the plans for the larger master bedroom had required the bedroom to extend three feet over the garage and the side yard property line, but the zoning required at least seven feet. The couple had to hire another contractor to come in to work the jobs of plumbing, electrical wiring and the phone lines, which enabled the project to begin 2 months late (December 26th). CITATION Cat92 \l 1033 (Catalano, 1992)The couple purchased all the materials themselves which allowed for quality products at a reduced cost. The Cronachers had already hired their contractors and had them in place, and one contractor in particular had apparently “won over the zoning board” but was not so trust worthy in just about every way. Nearly 4 months later, the work was still not getting completed, and had left the couple frustrated because it cost them nearly $160,000 more than what they had originally planned for. In another article related to projects of this matter, the courts ruled that the amount of money that homeowners can collect for construction defects can actually be reduced. A state appellate court has determined that builders can be sued for damages only if the home shows physical signs of decay CITATION Str98 \l 1033 (Strickland, 1998). Before the judgment, homeowners collected jury awards and settlements, sometimes in the amount of millions of dollars, after showing that their homes were not built according to plans, regardless of whether or not those changes resulted in defects. CITATION Str98 \l 1033 (Strickland, 1998)A Lower Burrell company is among seven home improvement contractors who had lawsuits filed against them by the state Attorney General for violation of the state Home Improvement Protection Act. CITATION Ano10 \l 1033 (Anonymous, Tribune Business News, 2010). They were accused of failing to start work, performing work in an unworkmanship manner, and using contracts that do not comply with the act. CITATION Ano10 \l 1033 (Anonymous, Tribune Business News, 2010). Other lawsuits of this matter were filed against companies that were located in Philadelphia, Bucks County, Lehigh County, and Berks County areas in Pennsylvania. CITATION Ano10 \l 1033 (Anonymous, Tribune Business News, 2010)ConclusionFrom the examples above, if SFC does not adhere to the standards and the promises in which they have given to their customers, then that is definitely a recipe for disaster. The project manager needs to be able to maintain integrity and ensure that the project is successful not only for the company itself, but for the customers that are really trusting the company to provide the best, quality product that they can. If the project falters, all individuals have too much at stake to take a loss or be disappointed. Laws are stringent, and the economy is tough, therefore, companies that take on projects really need to be able to get through the economic times, and understand that the customer is paying them for a quality product once that project is complete. The project manager for the SFC project really needs to ensure that the customer is getting the best product that SFC can deliver, to not only gain a return customer, but limit the likelihood that the company could face a lawsuit for an unsatisfied customer. If a construction company does not ensure that the home that they have built is safe for individuals, then the individuals that may have been harmed can actually sue the construction company for any type of fault or injury that may have been a result of the negligence from the construction company that had constructed the project.References BIBLIOGRAPHY \l 1033 Anonymous. (1996). Recipe for success: Cross functional teams plus project management skills. Getting Results for the Hands On Manager; ProQuest Research Library;Southwestern College , 1-4Anonymous. (2010, July 23). Tribune Business News. Retrieved September 18, 2012, from Southwestern College Library: , L. S. (2002). Towards Global Ethics. 324-344.Catalano, J. (1992, August 08). Newsday. Retrieved September 18, 2012 , from Southwestern College Library: , N. F. (2012). The NFRC Label: A Tool For Meeting and Exceeding Building Energy Codes. Retrieved September 18, 2012, from : , S. (2012, August 28). Take Multitasking to Task. Retrieved September 09, 2012, from Projects at Work: , E., & Gray, C. (2011). Project Management: The Managerial Process Fifth Edition. New York, New York: McGraw-Hill Irwin.McGevna, V. (2012, September 5). Do It Right. Retrieved September 09, 2012, from Projects At Work: County, C. B. (2012). Inspection Codes. Retrieved September 18, 2012, from Mesa County Building Department: , T. (2008, March 13). Master these 10 processes to sharpen your project management skills. Retrieved September 11, 2012, from Tech Republic: , S., Wahl, K., Lefort, C., & Frei, W. (2012). Exploring the Impact of Multitasking In the Workplace. Journal of Business Studies Quarterly , 154-162.Paulson, S. K. (2005). An Integerated Social Science Perspective on Global Business Ethics. International Journal of Commerce and Management , 178-187.Rizzo, T. (2004, December 18). What's The Problem, Really? (Conclusion, part 3). Retrieved August 09, 2012, from The Project Management Soap Box: , D. (1998, June 18). Los Angeles Times. Retrieved September 18, 2012, from Southwestern College Library: ................
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