CASE STUDY 1 Alternative Water Supply Gordon Rivers, the city manager of Saratoga, Florida, pitched the proposed design schedule back at Jay Andrews. Jay Andrews is the project manager for Major Design Corporation (MDC). The city of Saratoga selected MDC for this project. As a project manager, Jays responsibility is to assemble the technical team necessary to complete the project, develop and track the budget, establish and maintain the schedule, allocate resources as required, and manage the project until completion. We need the intake and transmission main designed, bid, and completed in 35 weeks. The city of Saratoga has a future $2 million dollar federal grant riding on the project getting done on time, Mr. Rivers said. Jay nodded in agreement. Mr. Rivers continued by saying, Jay, the project needs to come in on schedule and within the budget. Now take this schedule back and figure out how we are going to do it. Background Major Design Corporation is a 3,500-employee firm with annual revenues of more than $1 billion. The firm is divided into five geographically based global sales divisions, an engineering/technical services division based in the United States, and a wholly owned construction company. MDC offers full servicesconsulting, engineering, construction, and operationsacross the project life cycle for water, environment, transportation, energy, and facility resources. MDC was selected by the city of Saratoga to design a new, 10-million-gallon-per-day surface water intake and transmission main. The intake withdraws water from a canal and pumps it more than two miles to the citys wastewater treatment plant. There, the canal water is blended with reclaimed water (i.e., treated sewage water) and distributed back to customers for irrigation purposes. This project is touted as an alternative water supply project because the water source is not a historically used source. The project will increase the long-term sustainability of the city because it will diversify the citys water supply portfolio and recycle water. The project will also minimize the need for additional withdrawals from historic water sources, which have become less productive and more highly regulated in the past 10 years, as the citys population continues to grow. Other green benefits of the project include reduced environmental impacts on the historic water sources and a reduced carbon footprint, as the irrigation water requires less energy-intensive treatment than the citys other drinkable water sources. Project Description The objective of the project is to design a fully functional surface water intake that is protective of the environment, will last at least 30 years, and will have a low life-cycle cost (i.e., capital, maintenance, and energy consumption). For this type of project, engineering design accounts for 20 percent of total project cost. The design stage is also important because the decisions made during design lock in 80 percent or more of the life-cycle .

1. CASE STUDY 1 Alternative Water Supply Gordon Rivers, the city manager of Saratoga,
Florida, pitched the proposed design schedule back at Jay Andrews. Jay Andrews is the project
manager for Major Design Corporation (MDC). The city of Saratoga selected MDC for this
project. As a project manager, Jays responsibility is to assemble the technical team necessary to
complete the project, develop and track the budget, establish and maintain the schedule, allocate
resources as required, and manage the project until completion. We need the intake and
transmission main designed, bid, and completed in 35 weeks. The city of Saratoga has a future
$2 million dollar federal grant riding on the project getting done on time, Mr. Rivers said. Jay
nodded in agreement. Mr. Rivers continued by saying, Jay, the project needs to come in on
schedule and within the budget. Now take this schedule back and figure out how we are going to
do it. Background Major Design Corporation is a 3,500-employee firm with annual revenues of
more than $1 billion. The firm is divided into five geographically based global sales divisions, an
engineering/technical services division based in the United States, and a wholly owned
construction company. MDC offers full servicesconsulting, engineering, construction, and
operationsacross the project life cycle for water, environment, transportation, energy, and facility
resources. MDC was selected by the city of Saratoga to design a new, 10-million-gallon-per-day
surface water intake and transmission main. The intake withdraws water from a canal and pumps
it more than two miles to the citys wastewater treatment plant. There, the canal water is blended
with reclaimed water (i.e., treated sewage water) and distributed back to customers for irrigation
purposes. This project is touted as an alternative water supply project because the water source is
not a historically used source. The project will increase the long-term sustainability of the city
because it will diversify the citys water supply portfolio and recycle water. The project will also
minimize the need for additional withdrawals from historic water sources, which have become
less productive and more highly regulated in the past 10 years, as the citys population continues
to grow. Other green benefits of the project include reduced environmental impacts on the
historic water sources and a reduced carbon footprint, as the irrigation water requires less
energy-intensive treatment than the citys other drinkable water sources. Project Description The
objective of the project is to design a fully functional surface water intake that is protective of the
environment, will last at least 30 years, and will have a low life-cycle cost (i.e., capital,
maintenance, and energy consumption). For this type of project, engineering design accounts for
20 percent of total project cost. The design stage is also important because the decisions made
during design lock in 80 percent or more of the life-cycle costs of the project. As a result,
engineers take a holistic approach when selecting equipment and features for projects. A piece of
equipment, for example, that is inexpensive upfront may have significant, long-term maintenance
costs. The following narrative describes the main activities required to complete the AWS

2. project The project will begin with the development of a conceptual design (activity A). During
the conceptual design, engineers confirm the applicable regulations and laws for the project,
including sustainability criteria; perform evaluations of alternative equipment; identify site
conditions and constraints; and develop initial facility and equipment layouts. Once the
conceptual design is complete and MDC has received feedback on it from the city of Saratoga,
preliminary design (B) begins. Preliminary design expands the design based on the preferences
and constraints identified during the conceptual design. The preliminary design finalizes the
project design criteria (e.g., sizing, operational capacity, reliability, and sustainability) and
incorporates them (along with additional geotechnical, survey, and environmental findings) into
preliminary drawings and written specifications. Drawings and specifications are the key
informationintensive products that come out of this work. The drawings show how the project
will look when constructed, and the specifications provide detailed guidance and criteria by
which the construction is to proceed. For this project, the completion of the preliminary design
allows three other parallel tasks to begin: final design (C), environmental permit application
preparation (D), and property acquisition (H). Final design is a continuation of the preliminary
design stage. In final design, additional information is added to the specifications. Environmental
permit application preparation (D) involves taking certain drawings from the preliminary design
and modifying them to illustrate the controls included in the project to minimize environmental
impacts. To receive a permit, the engineers must demonstrate that the project will have little to
no impact on the environment and be constructed in accordance with applicable laws. Typical
impacts engineers try to prevent include storm water runoff from the site, pollutant discharges
from the site, uncontrolled emissions from equipment, destruction of natural habitats, and
displacement of endangered species. Once the environmental permit application is complete, it is
submitted to a regulatory agency for review. This activity, identified as environmental permit
review and approval (E), does not require any work on the part of the MDC engineers, but
cannot be crashed because an outside entity is responsible for it. Property acquisition (H) starts
with the identification of all properties on which the project sits or passes through. For the
properties identified that the city doesnt currently own, the city must acquire rights to use the
properties. There are two ways the city can obtain these rights. The first is to find a willing
sellera property owner who, for a price, will turn over certain property rights to the city. The
second is through condemnation. Condemnation is a lengthy legal process by which the city can
take the property rights from the owner by demonstrating to a court that the project serves the
public good and that there are no other viable alternatives. Activity Description A Conceptual
design 4 3 $ 30,000 $ 33,500 B Preliminary design A 12 10 $ 52,000 $ 58,000 C Final design B
19 16 $ 59,000 $ 76,000 D Environmental permit application preparation B 8 5 $ 48,000 $
58,200 E Environmental permit review and approval D 4 4 $ 38,000 $ 38,000 F Building permit

3. application preparation E 2 1 $ 35,000 $ 38,000 G Building permit review and approval F 4 4 $
6,000 $ 6,000 H Property acquisition B 20 18 $ 90,000 $115,000 I Bid project C, H 4 4 $ 6,000 $
6,000 J Construction start (dummy activity G,I 0 0 $ 0 $ 0 Immediate Predecessor(s) Regular
Time (weeks) Crash Time Normal Cost Crash Cost Estimate Upon approval of the
environmental permit, the engineers can begin work on preparing the building permit application
(F). This task involves filling out the application form and compiling the necessary sheets from
the drawing set to illustrate that the project will be constructed to the latest local, state, and
federal building codes. When the application has been completed, it is submitted to the
appropriate government entities for building permit review and approval (G). During the review,
the MDC engineer is not required to do any work, but, similar to the environmental permit,
nothing can be done to make the review go quicker because it is done by an outside party. When
the final design is complete and the building permit issued, the city can bid the project (I).
Bidding the project involves advertising the project in the local newspaper and online.
Contractors interested in building the project obtain a copy of the project drawings and
specifications from the city. Based on what they see in the drawings and how they interpret the
specifications, each interested contractor then develops a bid that will be low enough to win the
project while still allowing for a reasonable profit. During the bidding stage, MDC will assist the
city by responding to contractor questions, holding a meeting to discuss the project with potential
contractors (known as pre-bid meetings), and holding site visits of the actual construction site so
the contractors can get a better understanding of the conditions they will face if they win the job.
At the end of the bidding period, the contractors submit their bids in sealed envelopes to the city
of Saratoga. The city opens the bids and compares the submissions. The apparent low bid will be
sent to MDC for review. MDC will review both the dollar amount of the bid and the other
documents (e.g., drawings, references, insurance, specifications, and bonds) included in the
submittal. If a low bidder has not completed the other documents properly, it is deemed
nonresponsive, and the engineer begins a review of the next lowest bid. This process continues
until the lowest responsive bidder is identified. The bid phase ends with MDCs recommendation
to the city as to which qualified contractor should be awarded the job. Immediately following the
bid phase, as long as the building permit has been issued, construction can start (J). This dummy
activity has an activity time of zero. The construction start is a milestone that designates the end
of the engineering design phase of the project and the beginning of the construction phase
(another project). Decisions Jay manages about six engineering projects at any one time, so he
asks you to analyze this project for ways to complete it in 35 weeks. Jay would like to meet with
you tomorrow to discuss the results of your analysis.
CASE QUESTIONS: 1. Draw the project network, and determine the normal time to complete

4. the project, activity slack times, the critical path(s), and total project costs (i.e., baseline your
project), using the Critical Path Method. 2. Determine the best way to crash the project to
complete it in 35 weeks with revised activity slack times, critical path(s), and total project costs.
Provide reasoning as to how all crashing decisions were made. 3. Activity times with the greatest
uncertainty are activities D, E, and H. Describe conceptually how you could model this
uncertainty in activity times. (You do not have the necessary data actually to do this
numerically.) 4. What are your final recommendations?