CE167_ Fall_2011_HW7_Solutions - CE 167: Engineering and...

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CE 167: Engineering and Project Management Professor William Ibbs Fall 2011 Homework 7: Estimating and Introduction to Project Scheduling 25 Points Due: Nov. 15, 2011 1. [5 points] You are preparing a conceptual estimate for a wastewater treatment plant. The last wastewater treatment plant your organization constructed was built in 1999 in Riverside, CA at a total cost of $80 million with a capacity of 10 million gallons per day. This facility also featured a tertiary treatment system at an estimated additional cost of $5 million, and was impacted by a labor dispute that resulted in costs totaling $250,000. Despite this setback, the project experienced abnormally good weather and finished ahead of schedule. The new facility will be built in San Jose, CA and will feature a similar treatment system as the facility in Riverside but will not have tertiary treatment. This facility will have a design capacity of 12 million gallons per day, and local environmental regulations to discharge water to the bay require de-chlorination of the effluent. An off-the-shelf de-chlorination system to do this is estimated to cost $2 million in 2007 dollars. Construction projects in San Jose are also more likely to experience delays due to rain, and you have estimated the costs of a normal rain year at $250,000, a moderate rain year at $500,000, and severe rain at $1.5 million. The probabilities of each outcome during the project are 0.25, 0.50, and 0.25,
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CE167_ Fall_2011_HW7_Solutions - CE 167: Engineering and...

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