You and your spouse have purchased a foreclosure you hope to flip for a profit. The two bathrooms had been recently remodeled by the previous owners. The three bedrooms need only cosmetic work - something you decide to undertake yourself. The majority of your budget will be used for remodeling the kitchen, the dining room, and the family room.
Since this is your first flip, you've hired an experienced home inspector to help you scope the project. You want to track costs carefully to stay as close to budget as possible and to give you an accurate baseline for similar work in future flips. Rather than doing a hierarchical decomposition of the project into various products/outcomes and then adding work package descriptors for each lowest-level product/outcome, you chose to list the components that needed work and then describe the work that must be completed for each of these components.
You've mentally segregated the work into two broad categories: (1) higher priority work and (2) lower priority work. The higher priority work includes modifications to the electrical, HVAC, and plumbing systems, removal of two walls to provide an open concept arrangement, and common flooring throughout the kitchen, family room, and dining room areas. The remaining work you consider to be of lower priority. The scope and/or quality of finishes in the kitchen, dining room, and/or family room may have to be reduced if the cost of the higher priority work becomes an issue. You've also decided to add several control accounts within the two broad categories of work so that you can monitor and manage costs more effectively. These control accounts include:
- Utilities and Services (Electrical, HVAC, and Plumbing)
- Wall Removals
- Kitchen
- Dining Room (DR)
- Family Room (FR)
You decide to work backwards from your current list of work (shown below) to develop a WBS. You start by adding an element that represents the entire project and numbering it zero. To complete the WBS, you have to: (1) add the elements representing your two broad categories of work and the five control accounts; and (2) add a numbering system.
Question 1: Modify the WBS to add the two broad categories of work and the five control accounts listed above..
Question 2: Complete numbering the work breakdown structure in a hierarchical manner once these new elements are added. You want your scheduling software to roll up work package costs to these control accounts and the two broad categories of work.
WBS No.
WBS Element
0
Three-Room Renovation
Electrical System
Upgrade the electrical service to 200 amps
Replace the electrical panel
Rerun electrical circuits affected by wall removals
Run four new electrical circuits to the kitchen area
HVAC
Install new furnace and air conditioning units
Rerun heating and ventilation ducts affected by wall removals
Install ventilation duct for new kitchen range hood
Install ventilation duct for new kitchen microwave
Plumbing Systems
Install larger diameter water pipe from water meter to the house
Install tank-less hot water heater
Rerun water pipes affected by wall removals
Rerun vent pipes affected by wall removals
Install water supply pipe for refrigerator ice maker
Wall 1 Removal - Between Kitchen and Dining Room
Demolish existing wall 1
Install new beam 1 to accept existing structural loads
Repair ceiling in way of the new beam 1
Wall 2 Removal - Between Dining Room and Family Room
Demolish existing wall 2
Install new beam 2 to accept existing structural loads
Repair ceiling in way of the new beam 2
Flooring
Install new laminate flooring in the kitchen, dining room, and family room
Kitchen Window (Over Sink)
Remove existing window over the sink
Install new energy efficient window over the sink
Replace/repair drywall as necessary around the kitchen window
Install kitchen window trim
Kitchen Lighting
Replace existing can lights
Install new pendant lights over the island
Kitchen Cabinets, Island, and Countertops
Kitchen Cabinets
Install upper cabinets
Install lower cabinets
Install cabinet hardware
Kitchen Island
Install island
Install island hardware
Kitchen Countertops
Install cabinet countertops
Install island countertop
Kitchen Painting
Repair any remaining drywall defects in the kitchen
Paint the kitchen
Kitchen Appliances
Install range top
Install oven
Install microwave
Install refrigerator
Install dishwasher
DR Window
Remove existing DR window
Install new energy efficient DR window
Replace/repair drywall as necessary round the DR window
Install DR window trim
DR Lighting
Install new DR chandelier
DR Painting
Repair any remaining drywall defects in the DR
Paint the DR
FR Windows
Remove three existing FR windows
Install three new energy efficient FR windows
Replace/repair drywall as necessary around FR windows
Install FR window trim
FR Sliding Door
Remove existing FR sliding door
Reframe as necessary for new French door
Install new energy efficient French door
Replace/repair drywall as necessary around the door
Install door trim
FR Painting
Repair any remaining drywall defects in the FR
Paint the FR