well presented must mention question number clearly B u s i n e s s F i n a n c e
Instructions – PLEASE READ THEM CAREFULLY
Please read the Case-4.2 “The Home Improvement Project.”from Chapter 4 “Defining the Project” given in your textbook – Project Management: The Managerial Process 8th edition by Larson and Gray page no: 132 alsorefer to specific concepts you have learned from the chapter to support your answers. Answer the following questions with 500 Words limit.
- What factors and forces contributed to scope creep in this case?
- Is this an example of good or bad scope creep? Explain.
- How could scope creep have been better managed by the Nelsons?
The Home Improvement Project
Lukas Nelson and his wife, Anne, and their three daughters had been living in their
house for over five years when they decided it was time to make some modest
One area they both agreed needed an upgrade was the bathtub. Their current house
had one standard shower bathtub combination. Lukas was 6 feet four and could
barely squeeze into it. In fact, he had taken only one bath since they moved in. He
and Anne both missed soaking in the older, deep bathtubs they enjoyed when they
lived back East.
Fortunately, the previous owners that built the house had plumbed the corner of a
large exercise room in the basement for a hot tub. They contacted a trusted
remodeling contractor who assured them it would be relatively easy to install a new
bathtub and it shouldn’t cost more than $1,500. They decided to go ahead with the
First the Nelsons went to the local plumbing retailer to pick out a tub. They soon
realized that for a few hundred dollars more they could buy a big tub with water
jets (a Jacuzzi). With old age on the horizon a Jacuzzi seemed like a luxury that was
worth the extra money.
Originally the plan was to install the tub using the simple plastic frame the bath
came with and install a splash guard around the tub. Once Anne saw the tub, frame,
and splashguard in the room she balked. She did not like how it looked with the
cedar paneling in the exercise room. After significant debate, Ann won out, and the
Nelsons agreed to pay extra to have a cedar frame built for the tub and use
attractive tile instead of the plastic splashguard. Lukas rationalized the changes
would pay for themselves when they tried to sell the house.
The next hiccup occurred when it came time to address the flooring issue. The
exercise room was carpeted, which wasn’t ideal when getting out of a bathtub. The
original idea was to install relatively cheap laminated flooring in the drying and
undressing area adjacent to the tub. However, the Nelsons couldn’t agree on the
pattern to use. One of Anne’s friends said it would be a shame to put such cheap
flooring in such a nice room. She felt they should consider using tile. The
contractor agreed and said he knew a tile installer who needed work and would
give them a good deal.
Lukas reluctantly agreed that the laminated options just didn’t fit the style or quality
of the exercise room. Unlike the laminated floor debate both Anne and Lukas
immediately liked a tile pattern that matched the tile used around the tub. Anxious
not to delay the project, they agreed to pay for the tile flooring.
Once the tub was installed and the framing was almost completed, Anne realized
that something had to be done about the lighting. One of her favorite things to do
was to read while soaking in the tub. The existing lights didn’t provide sufficient
illumination for doing so. Lukas knew this was “non-negotiable” and they hired an
electrician to install additional lighting over the bathtub.
While the lighting was being installed and the tile was being laid, another issue
came up. The original plan was to tile only the exercise room and use remnant rugs
to cover the area away from the tub where the Nelsons did their exercises. The
Nelsons were very happy with how the tile looked and fit with the overall room.
However, it clashed with the laminated flooring in the adjacent bathroom. Lukas
agreed with Ann, that it really made the adjacent bathroom look cheap and ugly.
He also felt the bathroom was so small it wouldn’t cost much more.
After a week the work was completed. Both Lukas and Anne were quite pleased
with how everything turned out. It cost much more than they had planned, but they
planned to live in the house until the girls graduated from college, so they felt it
was a good long-term investment.
Anne had the first turn using the bathtub followed by their three girls. Everyone
enjoyed the Jacuzzi. It was 10:00 p.m. when Lukas began running water for his first
At first the water was steaming hot, but by the time he was about to get in, it was
lukewarm at best. Lukas groaned, “After paying all of that money I still can’t enjoy
a bath.” The Nelsons rationed bathing for a couple weeks, until they decided to find
out what if anything could be done about the hot water problem. They asked a
reputable heating contractor to assess the situation. The contractor reported that
the hot water tank was insufficient to service a family of five. This had not been
discovered before because baths were rarely taken in the past. The contractor said
it would cost $2,200 to replace the existing water heater with a larger one that would
meet their needs. The heating contractor also said if they wanted to do it right, they
should replace the existing furnace with a more energy efficient one. A new furnace
would not only heat the house but also indirectly heat the water tank. Such a
furnace would cost $7,500, but with the improved efficiency and savings in the gas
bill, the furnace would pay for itself in 10 years.
Besides, the Nelsons would likely receive tax credits for the more fuel-efficient
furnace. Three weeks later, after the new furnace was installed, Lukas settled into
the new bathtub. He looked around the room at all the changes that had been made
and muttered to himself, “And to think that all I wanted was to soak in a nice, hot