Silver Fiddle Construction

Case Overview
-

Silver Fiddle Construction (SFC), hired by the Czopeks to build their dream home.
Specializes in building high quality and customized homes in the Grand Junction, Colorado

area.
Tentatively scheduled to complete 11 houses this year.
The promised final cost for the Czopeks house will range from $450,000.00 to $500,000.00.
It will take five (5) months to complete the house once groundbreaking has begun.
The Czopeks are willing to delay the project to save costs.

Deliverables for this project

1.
2.
3.
4.

A 2,500-square-foot, 2-1/2 bath, 3 bedrooms, finished home.

A finished garage, insulated and sheetrocked.
Kitchen appliances to include range, oven, microwave, and dishwasher.
High-efficiency gas furnace with programmable thermostat.

Milestones of the project

1. Permits approved July 5.
2. Foundation poured July 12
3. Dry inframing, sheathing, plumbing, electrical, and mechanical inspectionspassed
September 25.
4. Final inspection by the owner November 7.
Questions and Answers
1. Identify potential risks associated with this project. Try to come up with at least five
different risks.
Potential Risks for the project:
-

Unfavorable weather conditions

Absenteeism and inconsistent workers
Revisions or change of preferences (Design, Layout, etc.) in the house by the owners.
Price change on materials needed for construction
House costs more than the projected cost limit of $500,000.00.
Possible reject or faulty appliances, wires, outlets, bulbs, etc.

2. Use a risk assessment form similar to Figure 7.6 to analyze identified risks.
Risk Assessment Form

Risk Event

Likelihood

Impact

Detection

When it will

Difficulties
3

happen
Groundbreaking,

Unfavorable
weather

progress of the

conditions

projection, up to
its finishing

Absenteeism

phase.
Throughout the

and inconsistent

project proper.

workers
Revisions on the

After the

plans

foundation is

Price and

poured and set.

During the

changes on

course of the

materials
House costs

project.
Throughout the

more than the

projects

projected cost
Possible reject or

completion
During the wiring

faulty

and installation

appliances,

phase of the

wires, bulbs, etc.

project.

3. Develop a risk response matrix similar to Figure 7.8 to outline how you would deal with
each of the risks.
Risk Response Matrix
Risk Event

Response

Contingency
Plan

Trigger

Who is
Responsible

Unfavorable

Retain

Adjust to the

Forecast of

weather

weather.

unfavorable

conditions

Prioritize what

weather in the

needs to be

area.

Contractor

done first (major

works)
Avoid at all cost,

Workers start to

Contractor,

and inconsistent

if it happens,

complain about

Foreman / Team

workers

company should

work schedules

leader assigned

be ready with

and pressure or

in the project.

back up or on

not satisfied with

call consistent

the

workers.
By

management.
Not satisfied with

communicating

the actual output

to the owner that

of the design,

if they change or

therefore they

revise certain

change

layouts or

preferences.

Absenteeism

Revisions on the

Avoid

Retain

plans

Contractor

designs it will
incur additional
cost to them.
Ensure that the

Economic

changes on

prices and

activity, prices

materials

quantity of

varies from the

materials needed

demand in the

are already

market.

Price and

Avoid

calculated before
the costing is
presented to the
owners. The
contractor should
have carefully
projected the
possible change

Contractor

in the prices and

therefore stock
enough supplies.
Careful cost

Cost of materials

Book keeper,

more than the

projection must

in the market

Contractor

projected cost

be done before

went up and

the project

more materials

begins. Allot

are needed than

buffer /

projected the

allowance

projected

budget that

quantity.

House costs

Avoid

should be
communicated
with the owners
just in case.
Choose a

Appliance

Contractor,

faulty

reputable

Malfunction

Supplier

appliances,

supplier for these

wires, bulbs, etc.

materials.

Possible reject or

Avoid

Careful testing
must be done
before buying
these materials.