Silver Fiddle Construction Case Study Presentation By Stacey

Silver Fiddle Construction Case Study Presentation By: Stacey R. Cook March 25, 2013

Overview � Silver Fiddle Construction Background � The Customers � Project Statement/Objective � Requirements of the Project � Milestones � Technical Requirements � Limits and Exclusions � Risk Assessment � Customer Review � Examples of What Could Go Wrong If a Proper Risk Assessment is not conducted

Silver Fiddle Construction � Silver Fiddle Construction (SFC) specializes in high quality customized homes � General Contractor operation � Part Time Book keeper � SFC tentatively scheduled to complete 11 houses this year

The Customers’ � The Czopeks hired SFC to build their “dream home” � SFC has promised the Czopeks that the final costs would be $450, 000 - $500, 000 � The home could take up to 5 months to complete � The Czopeks would be willing to have the project delayed in order to save costs

SWOT Analysis Strengths: Opportunities: Experience Possibility to establish new customers if current customers are satisfied Flexible Customers 11 other homes to complete Weaknesses: Threats: Hiring other contractors for other trades Over extending finances Part time book keeper Time constraints

Project Objective Statement � “To construct a high quality custom home within 5 months at a cost not to exceed $500, 000. ”

Requirements of the Project � Upon completion of the project SFC will be able to provide: ◦ A 2, 500 square feet, 2. 5 bath, 3 bedroom, finished home ◦ An insulated and finished garage ◦ Kitchen appliances including range, oven, microwave, and dishwasher ◦ High efficiency gas furnace with a programmable thermostat

Milestones of the Home Project � The Permits for the Home were approved July 5 th � The Foundation for the home was poured July 12 th

Technical Specifications � The home must meet local building codes � Windows and doors must pass NFRC class 40 energy ratings � Exterior wall insulation must meet requirements � Ceiling insulation must meet requirements � Structure must pass seismic stability codes

Limits and Exclusions � Original Blue prints were designed by the customer � Owner is responsible for the landscaping � Refrigerator is not included with the kitchen appliances � Air Conditioner is not included, but the house is prewired for it � SFC reserves the right to contract out services

Risk Assessment Risk Event Likelihood Impact Detection Difficulty When Time Constraints 3 5 1 2 months after ground breaking Exceeding budget 2 5 3 3 months after ground breaking Hired Contractors 3 5 1 3 months after ground breaking Wiring of AC unit (non existent unit) 3 5 1 4 months after ground breaking Customer Satisfaction 3 5 1 After project is complete

Risks Risk Response Matrix Response Contingency Plan Trigger Responsible Time Constraints (Schedule) Mitigate: Review schedule daily with those involved. Hire more resources 3 Months before deadline Project Manager Exceed Budget Mitigate: Find efficient contractors that are within a reasonable price Set aside emergency fund aside for the construction or contractors Budget exceeds $300, 000 Book Keeper, Project Manager, and President Outside contractors not working on assigned tasks right away Mitigate: Before starting the construction project, ensure contact is made with additional contractors Have at least two sets of contractors for each specialty required Before ground breaking to start construction Project Manager Technical risks with the wiring for the AC unit Mitigate: Test the wiring with a unit even if it is not for the house itself Increase the team size to resolve any issues with the wiring Knowing that there will not be a unit placed in the home right away after wiring Project Manager and contractor Customer Satisfaction Mitigate: Customer Service follow up after project If customer is unhappy find out why and how to Complaints from the customer The potential for all involved with the project.

Customer Evaluation � “Bolo” and Izabella will be inspecting the home once the inspectors have gave the final say so if the safety and regulations have been complied with.

Other Stories � The Cronacher remodel disaster � The Appellate court ruling � 8 Lawsuits filed in Pennsylvania for violating Home Improvement Protection Act

Conclusion � Project Managers and their Project Teams really need to ensure that the customer is satisfied, not just for the company to succeed but to be able to decrease the likelihood for potential lawsuits!!!