Discussion
Peach Computer Company intends to build a $6 million 120,000-foot building near Dayton, Ohio. In the past, the company has purchased similar buildings. The method used for the purchase of the previous buildings has been using plans and specifications. These are provided by an A&E firm and are used as the basis for bidding from contractors who actually build the building. The plans and specifications provided by the A&E firm are also used as the standard on which quality measures are made. The cost of this approach is approximately 8% of the estimated cost of construction. Donald bright ...