CHAPTER 8 PROJECT TIME-COST TRADE-OFF

20 43D (23)22 450 12 12 20 20 25A (12) B (8)E (5)0 12 14 22 22 272@100 2@150 1@5027 45G (18)27 453@6045 57I (12)45 572@7512 27C (15)12 273@20027 32F (5)27 321@30032 45H (13)32 452@40A new critical path will be formed, A-C-F-H-I.New contract duration is 57 days and the cost increase is 2 x 60 = LE 120.2. At this step the activities that can be crashed are listed below:Either “A” at cost LE 100/dayOr “C” at cost LE 200/dayOr “I” at cost LE 75/dayOr “F & G” at cost LE 360/dayOr “H & G” at cost LE 100/ dayActivity “I” is chosen because it has the least cost slope, and it can be crashed by 2days. Because it is last activity in the network, it has no effect on other activities.20 43D (23)22 450 12 12 20 20 25A (12) B (8)E (5)0 12 14 22 22 272@100 2@150 1@5027 45G (18)27 453@6045 55I (10)45 5512 27C (15)12 273@20027 32F (5)27 321@30032 45H (13)32 452@40New contract duration is 55 days and the cost increase is 2 x 75 = LE 150.Cumulative cost increase = 120 + 150 = LE 270Construction Management 177 Dr. Emad Elbeltagi