Reference no: EM131375190
A customer hires a contractor to install European mosaic tiles in 5 rooms in his house. The customer had previously purchased the tiles, so the contractor will be paid for labor only and any additional costs incurred that both parties agree as necessary (assume whatever is mentioned has been agreed.) The job has been estimated to take one contractor 1 day per room, working 8 hours per day, at $100/hr, but overtime will be paid if necessary at the rate of $150/hr.
It is now the end of Day 4, and the following status was determined:
Room 1 was completed on day 1.
Room 2 was completed on day 2.
Room 3 was completed on day 3 with 2 hours of overtime.
Room 4 was started on day 4. In working on room 4, some rotting wood was discovered in the flooring, and the contractor said he could repair that for an additional $300 of materials. The customer agreed to that payment, the repair was completed, but the tiling of the room was only 50% complete at the end of the day, with no overtime.
What would the cost performance need to be in the future, in order to complete this project on budget?
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