Project Planning for New Model Home Pre construction Rey Ross GBA 573 July 10 2003 Project Overview To increase efficiency in the homebuilding process and maximize profitability Assess and reduce risks that can cause delays before construction begins Standardize the pre construction project plan to establish an accurate means of estimation for future projects Revenues Cost INDIRECT CONST RUCT ION BUDGET WORKSHEET PROJECT Mandalay DATE NUMBER OF PHASES DATE PRINTED PROJECTED ABSORPTION TOTAL NO OF UNITS 101 INDIRECT CONSTRUCTION BUDGET SUMMARY NO 1 2 3 4 5 6 7 8 9 10 11 12 DESCRIPTION ARCHITECTURAL PLANS 06 600 FRONT YARD LANDSCAPE PLANS 06 601 INSURANCE PREMIUMS 06 608 BOND PREMIUMS 06 609 CONSUMER RESEARCH 06 623 PLOT PLANS AND SITE PLAN 06 622 CONCEPTUAL ARCHITECTURAL DRAWINGS 06 624 CC R S LEGAL 06 628 DRAFTING AND ENGINEERING 06 630 MISC Blue Prints Mes s enger etc 06 632 CONSTRUCTION CHANGES 06 635 MODEL COMPLEX CONVERSION 06 640 GRAND TOTAL BUDGET TOTAL COST PER PLAN TOTAL BUDGET 51 000 PERCENT OF TOTAL 26 53 Page 2 9 000 4 68 Page 2 0 0 00 Page 2 0 0 00 Page 2 0 0 00 Page 2 22 725 11 82 Page 2 30 000 15 61 Page 2 11 000 5 72 Page 2 16 500 8 58 Page 2 12 000 6 24 15 000 7 80 25 000 13 01 192 225 100 00 REFERENCE Page 2 1 903 FINAL COST AT COMPLETION 0 Measures of Success Increased profit as percent of revenue Increased accuracy in project cost and schedule estimation Decreased direct budget due to reduction in construction defects throughout the process Decreased indirect budget due to efficient standardized project plan Increase in customer satisfaction Feasibility Analysis Mandalay Neighborhood R1 at Lomas Verdes SPA II Conceptual Floorplan Decision Point B December 13 2002 I II III THE PROPERTY A Project Location Lomas Verdes Chula Vista California B Number of Lots 101 THE MARKET A Market Niche Single family detached 2 700 to 3 600 sq ft on 6 000 sq ft lots B Buyer Profile Move up Buyers with 1 to 4 Children and Empty Nesters THE PRODUCT A Product and Pricing INITIAL BUSINESS PLAN DECISION POINT A Plan 1 2 3 W Avg Sq Ft 2 700 3 100 3 400 3 070 Base Price 378 990 405 990 434 990 406 931 B Direct Construction Cost Goals Untrended Cost per Sq Ft C Indirect Construction Cost Goals Cost per Sq Ft D Amenity Level E Plotting F Model Cost Goal IV 05 30 02 Price Sq Ft 140 37 130 96 127 94 132 54 Mix 33 34 34 101 43 24 400 500 1 82 600 B PAHL and Pre plot 701 000 CONCEPTUAL FLOORPLAN DECISION POINT B Plan 1 2 3 W Avg Sq Ft 2 729 3 180 3 510 3 144 Base Price 450 990 470 990 500 990 474 554 B Direct Construction Cost Goals Untrended Cost per Sq Ft C Indirect Construction Cost Goals Cost per Sq Ft 12 12 02 Price Sq Ft 165 26 148 11 142 73 150 95 Mix 33 34 34 101 45 53 400 500 1 78 600 D Amenity Level B E Plotting Pre plot F Model Cost Goal 701 000 BUSINESS PLAN Net Project Profit Profit Per Unit Profit as Percent of Revenue 8 258 000 81 762 17 7 Net Project Profit Profit Per Unit Profit as Percent of Revenue 12 727 000 126 010 23 6 Risk Management Strategy REQUEST FOR BUILDERS RISK INSURANCE TRACT CONSTRUCTION DEVELOPMENT NAME Lomas Verdes CONST LENDER ANYBANK DATE OF START xx xx xxxx PROJECT NAME Mandalay ADDRESS N A SUBMITTED BY Rey Ross PHASE Models LOAN NO xxxxxxxxxxxx PHONE xxx xxxx SIZE LIV GAR COMPLETED COST COMPLETED COST X 104 PAGE 1 OF 1 DATE 7 10 03 LOT NO STREET ADDRESS PLAN MODEL NO 31 1476 Heatherwood Avenue 1 2 717 608 S F 135 850 141 284 42 416 00 32 1482 Heatherwood Avenue 2 3 206 677 S F 147 797 153 708 41 867 00 33 1488 Heatherwood Avenue 3 3 509 646 S F 160 361 166 776 33 374 00 TOTAL 461 768 UPGRADES MODELS ONLY 117 657 Communication Strategy Weekly Project Manager Bi weekly Project Team Monthly Executive Committee Quarterly Sponsor or Equity Partner Gantt Chart Jul y ID 1 Task Name PRODUCT DEVELO PMENT 12 PLO T PLANS 13 Determine Final M odel Comp lex Location 14 M odel Comp lex Lay out 15 Preliminary Plot Plans 16 Plot Plan Walkthrough 17 Final Plot Plans 18 Prep are Develop ment Review Ap p lication 20 Design Committee Review 21 City Develop ment Review 23 August 7 14 21 S epte mbe r 4 11 18 25 28 9 4 2 Octobe r 9 16 23 30 Nove mbe r 6 13 20 9 25 January 8 9 29 10 2 10 13 11 16 11 22 11 27 12 8 9 4 DRE White Rep ort VA Submitt al MODEL LANDS CAPING 10 16 10 20 Select Hire Landscap e Archit ect 25 Concep tual M odel Landscap ing Plans 26 Landscap ing and Fencing Cost Estimate 27 Concep tual Plan Revisions 28 Landscap e Plan Submitt al Concep tual 12 5 29 Prep are Landscap e Fencing Working Dwgs 12 5 30 Landscap e Hardscap e Plan Submit tal Permit 31 Final Review Est imate for Landscap ing 32 MODEL INTERIORS COLORS 33 Int erior Design Present ation 34 Final Interior Design Plans 35 Sales Office Op tion Room Design 10 23 11 10 11 13 11 17 11 20 12 1 1 1 1 15 1 17 10 16 11 3 11 6 12 1 11 13 12 1 36 Select M odel Up grades 11 20 37 Ext erior Color Schemes 11 20 38 Painter s Legend Ext erior Color Schedule 39 M arketing Plan Decision Point 12 1 11 24 11 27 12 1 12 4 12 15 CO NS TRUCTION LOAN 41 M arket Research 42 Loan Pkg Sales Prices Const Costs 43 Loan Package Text Exhibits 44 Prep are Loan Package 45 Loan Package Submitt ed Funded 46 Lot Insp ection Transfer 47 1 9 8 24 40 De ce mbe r 4 11 18 25 27 DEVELO PMENT REVIEW DRE VA 19 22 31 8 15 9 4 9 5 9 18 9 12 9 18 9 19 9 25 9 26 12 4 11 21 12 4 PLAN CHECK FINAL PRECONS T ITEMS 11 20 11 24 48 Final Soils Rep ort Comp lete 49 Plan Check Sales Office Op tions Bathroom 12 18 50 Construct ion Cost Bidding 12 18 51 Final Preconstruct ion Decision Point 52 Develop ment Site Walls 53 Home Site Walls 54 Curbs Streets Sidewalks Water 55 Energiz e Power for M odels Temp Perm 2 5 56 Inp ut Dat abase Information 2 5 57 Risk M anagement Rep ort 2 5 58 Preconstruct ion M eeting 59 CO NS TRUCTION S TART 2 5 1 22 2 5 1 22 Work Breakdown Structure Plot Plans Development Review Model Interiors …