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Is3110 Unit 4

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Is3110 Unit 4
If the project is completed on time then there is no risk for completion. All of the regular risks that apply to a project built on time apply to this one regardless of whether you are building a new infrastructure or modifying an older one. If the project is finished one month early, the quantitative risk really does not exist. It is basically comparable to completing the project on time. Since the project is quoted at 3 million dollars it will stay the same regardless of how fast the project is finished. However, you may see differences. When you rush a project this large you could possibly cut corners or receive poor quality results. If the project is finished two months late there are additional risks. If the company expects to make $20 million dollars annually, and assuming that the 4% penalty is levied against this yearly figure and not within smaller period of time, one month late means that US Industries Incorporated loses $800,000 annually. There doesn't appear to be any additional risk, however, further penalties and the possible eventual loss of the contract to a competitor could result in a poor product. There again appears to be no real quantitative risk involved if the project is finished a month early with the security requirements. If the originally quoted $3 million dollars remains the same regardless of how fast the project is finished and not coupled with hourly or daily wages, then there is nothing to lose financially. However the companies go beyond the required 1.5% completion benchmarks that the contract demands. Rushing a project of this scale also comes with rushed results possibly cut corners or poor quality. The credibility of the company is at stake with such a high profile, high income project such as this, and it is important to use all of the time available to ensure the best product is on display for any customer. The finished project should meet both the time and security requirements but not the service agreement. There does not

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