Final Project- Case Study: Silver Fiddle Construction
Silver Fiddle Construction
Stacey R. Cook
MGMT 505- Project Management Fundamentals
March 25, 2013
Dr. Darrin DeReus
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Final Project- Case Study: Silver Fiddle Construction
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Abstract
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.
Final Project- Case Study: Silver Fiddle Construction
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Introduction
Silver Fiddle Construction (SFC) specializes in building high quality, customized homes
in the Grand Junction, Colorado area. (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 (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
Final Project- Case Study: Silver Fiddle Construction
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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:
Opportunities:
Experience
Possibility to establish new customer base if
Flexible Customers
current customers are satisfied
11 other homes to complete
Weaknesses:
Threats:
Hiring other contractors for other trades
Over extend finances
Part time book keeper
Time constraints
Project 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 Home
Not 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
Final Project- Case Study: Silver Fiddle Construction
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efficiency gas furnace with a programmable thermostat to accompany the furnace system.
(Larson & Gray, 2011)
Milestones of the Home Project
SFC 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 1
Plumbing Group 2
Mechanical Group 3
Electrical Group 4
100 Footer
220 Underground
34 Gas Piping & Test
460 Temporary Pole
102 Foundation
222 Rough In
342 Boiler/Furnace
462 Rough In
104 Slab
224 Sewer
343 In Floor Heat
464 Temporary
Service
106 Frame
226 Waterline
344 Hot Water Heater
466 Underground
108 Insulation
232 Final
346 Venting
470 In Slab Rough In
110 Fireplace
234 Manufactured
348 Mechanical
472 Ceiling Rough In
Final Project- Case Study: Silver Fiddle Construction
Home
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Duct/Fire Dampers
111 Reroof
350 Gas Fireplace
474 Soffit Rough In
112 Structural Steel
352 Wood Burning
476 Final
Appliance
113 Fire Wall
354 Hood System
478 Manufactured
Home
114 Masonry/Grout
356 Final
115 Stucco Lath
358 Manufactured
Home
116 Final CO
360 AHU Smoke Test
118 Manufactured
Home
120 Set Backs
Foundation Certificate *Zoning Code Group
*Fire Dept Codes
Group 5*
Commercial Final
600 Inspection Code*
Back Flow Inspection
Plumbing Contractor:
Mechanical
Electrical Contractor:
Contractor:
The chart is used for the final inspection process for the home (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
Final Project- Case Study: Silver Fiddle Construction
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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. (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. (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.
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Limits and Exclusions to the project
The 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
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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 delays
-
Exceeding 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.
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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.
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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”.
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Risk Assessment Form
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
3
5
1
4 months after
ground breaking
3
5
1
After project is
complete
Wiring of
nonexistent AC
Unit
Customer
Satisfaction
Risk Response Matrix
Risks
Time
Constraints
(Schedule)
Response
Mitigate: Review
Schedule daily with
those involved
Contingency Plan
Trigger
Responsible
Hire more resources
3 Months before
deadline
Project
Manager
Book keeper,
Project
Manager and
President
Exceed
Budget
Mitigate: Ensure labor
Set aside emergency fund
does not work overtime for project
Budget exceeds
$300,000
Final Project- Case Study: Silver Fiddle Construction
Outside
contractors
not working
on assigned
tasks right
away
Technical
Risks with the
wiring for the
future AC unit
Mitigate: Before
starting the
construction project,
ensure to contact the
appropriate contractors
for each job
Mitigate: Test the
wiring for the unit by
using a sample unit to
ensure that an AC unit
will work
Customer
Satisfaction
Mitigate: Customer
Service follow up
construction is
complete
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Have 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
construction
Increase team size to
resolve any issues found
with product during testing
Just installing the
wiring for the
potential unit for
an AC Unit
If customer is unhappy,
find out why and see how
the company can help
correct the issue
Complaints from
Customer
Project
Manager
Project
manager and
contractor
President,
Project
Manager and
Construction
Team
Customer Evaluation
The 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 Cut
A 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. (Catalano, 1992). Vicki
Cronacher decided that she really wanted to increase the size of her master bedroom, and update
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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). (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 (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. (Strickland, 1998)
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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. (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. (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. (Anonymous, Tribune Business News, 2010)
Conclusion
From 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.
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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.
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References
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Final Project- Case Study: Silver Fiddle Construction
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