Blue Mountain Cabin Jack and Jill Smith have just retired and want to build a small basic cabin Blue Mountains: Management Case Study Homework, TU
|University||Trent University (TU)|
Blue Mountain Cabin Case Study
Jack and Jill Smith have just retired and want to build a small, basic cabin in the Blue Mountains of Vermont. They have hired Daryl Hannah as the general contractor for the project. She has assembled a team of three workers to complete the project: Tom, Dick, and Harry. Daryl has negotiated a cost-plus contract with the Smiths whereby she will receive 15 percent beyond the cost of labor and materials. Before they sign the contract the Smiths want an estimate of how much the project is likely to cost and how long it will take. Darryl has estimated that the cost for materials, permits, etc., will total $40,000. She wants to determine labor costs as well as how long the project Will take.
This is one of several projects Daryl is managing. and other than occasionally helping out, her role is strictly limited to supervising. She has devised the following master plan and assignments. Note that Dick is the only skilled plumber in the group while Harry is the only skilled electrician. Tom is a general carpenter and can assist them with their work. Dick and Harry each get paid $300 a day while Tom gets paid $200 per day. Darryl has negotiated a 10 percent management reserve to deal with unexpected emblems. Unused funds will be returned to the Smiths.