Question

A customer (homeowner) hires a contractor to wallpaper all of the walls in each of the five identical rooms in his home. The customer purchases the wallpaper and reimburses the contractor just for labour. The contractor works at £100 per hour and estimates eight hours of work per room, for a total of five days. At the end of the first week (Monday to Friday), working eight hours per day, the contractor completed only three rooms. find the PV EV AC BAC.

Answer 1

The concepts of Planned Value (PV), Earned Value (EV), Actual Cost (AC), and Budget at Completion (BAC) are used to assess the financial performance of a project. In this scenario, the contractor's PV and BAC are £4000, the EV is £2400, and the AC is £4000.

Step-by-step explanation:

The question presented involves project management concepts like Planned Value (PV), Earned Value (EV), Actual Cost (AC), and Budget at Completion (BAC). To calculate these, we use the information provided about the work done by the contractor. Let's begin with the definitions:

• Planned Value (PV) is the estimated value of the work planned to be done. In this case, the contractor planned to complete 5 rooms at £100 per hour for 8 hours each, totaling £4000 (5 rooms x £100 x 8 hours).
• Earned Value (EV) is the value of the work actually completed. Since only 3 rooms were completed, the EV is £2400 (3 rooms x £100 x 8 hours).
• Actual Cost (AC) is the actual cost incurred to complete the work. Given that the contractor worked for five days at 8 hours per day, the AC is £4000 (5 days x 8 hours/day x £100/hour).
• Budget at Completion (BAC) is the total budget for the project. In this case, it's £4000, same as the PV since the scope of work hasn't changed.