Highlights
You are bidding on a contract to carry out a major reforestation effort that remediates an area of land previously used for high-impact logging (clearcutting). The goal of this work is to distribute seedlings over the area following reforestation best practice. You are competing for this contract with others, and the lowest bid usually wins the work. You need to figure out what your costs will be in order to quote a competitive price in your bid.
SCOPE OF WORK
The project scope includes:
• Purchase an adequate supply of seedlings
• Set up a base camp near the planting site
• Arrange transportation to get planters from base camp to the subject land each work day • Cover the entire plot of land with seedlings
• Space seedlings apart to achieve the target density
• Plant each seedling properly to maximize the chances of growth
• Tear down the base camp when planting is done
The subject land is between 50 and 130 hectares in area. It is serviced by a single forestry road that is only usable between the start of June and the end of August. The access road terminates approximately in the center of the subject land, which is ideal since planters can start from this point and complete planting loops each work day.
Seedlings are planted manually by a group of (usually) college students. Each planter has a backpack full of seedlings and some specialized planting tools to enable rapid planting over rough terrain. A typical planter can plant between 110 and 150 seedlings per work day. Seedlings are planted at a mean density of one seedling per five square meters. They cost $0.70 each.
Planters are housed at a base camp for the duration of the job. The base camp has tents, sanitation facilities, and a kitchen. The base camp is 30 minutes by truck from the plant site. The base camp has a fixed operating cost of $500 per day, and a one-time fixed setup/strike cost of $2000. The base camp cost includes a truck for transporting planters.
Planters work from 0700h to 1500h six days per week. They are paid from $1.39 to $1.79 for each planted seedling. They are not paid by the hour, so they can choose when to take their own rest and lunch breaks. In addition, each planter is paid a $1000 bonus upon completion of the project.
The planting supervisor follows planters at random to inspect the quality of work and ensure seedlings are planted properly. The supervisor is paid a daily flat rate of $300.
Your task is to figure out what your net job costs will be, and then add a markup to cover your overhead and make a profit. Your markup rate is 30%.
This assignment is intended to help you understand how projects are constrained (the iron triangle) and the relationships between effort, duration, and elapsed time. When you create your quote:
• Assume all planters can plant seedlings at the exact same rate per work day.
• Assume all planters remain with the project until completion and thus earn the bonus.
• For planning purposes you can assume each month has exactly 30 calendar days.
• For planning purposes you can assume each month has exactly 25 working days.
• Try to build a quote using the minimum number of planters.
• You cannot allocate a partial planter. If you discover you need 20.5 planters, you need to hire 21.
Important! You will be assigned one of the following variations by your instructor. Make sure you use the values for the variation you are assigned!
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