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Mrs. Smith and her husband, George, are planning their retirement and their dream house on the lake. The lot for the house sits high on a bluff with a beautiful view of the Chesapeake Bay. The plans for the house show the size of the house to be 3,900 square feet. The average price for a lot and house similar to this one has been $175 per square foot. Fortunately, George is retiring from 20 years as an electrician and feels he can save money by installing the electric himself. Mrs. Smith feels she can take care of the interior decorating.
The following average cost information is available from a local bank that makes loans to local contractors and disperses progress payments to contractors when specific tasks are verified as complete.
24 %
Excavation and framing complete
8 %
Roof and fireplace complete
3 %
Wiring roughed in
6 %
Plumbing roughed in
5 %
Siding on
17 %
Windows, insulation, walks, plaster, and garage complete
9 %
Furnace installed
4 %
Plumbing fixtures installed
10 %
Exterior paint and finish hardware installed
Carpet and trim installed
Interior decorating
Floors laid and finished
a. What is the estimated cost for the Smith's house if they use contractors to complete all of the house?
b. Estimate what the cost of the house would be if the Smith's use their talents to do some of the work themselves.
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