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You have received a Request for Quotation where the project duration must be 76 days
Your company’s target margin is 40% on cost to build.
Your engineer has planned out the job and has drawn the project network shown below.
Activity durations are for the All Normal situation and compression options are shown
in the usual notation.
The All Normal project cost is $42,850.
a) 1 Carry out project compression calculations up to full crash. (3 marks)
2 Sketch the Direct Cost Curve. (½ mark)
b) Prepare the quotation to achieve the 76 day project duration. (½ mark)
c) Suppose you win the job at the 76 day cost. You start the job but there are problems
and B will finish 3 days late. Work out the lowest cost plan to catch up the lost time
and still finish at 76 days. Calculate the cost and the plan. (1 mark)
Optional: You can check your calculations using the P E el sol er met d described
as an optional topic. Alternatively, use IN O which is easier to use than Excel Solver.

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