Garage Conversion With a Fixed Budget and Deadline
A client has a USD 18,000 total budget and a 10-week deadline to convert a 5.5 m × 6.0 m garage into a home gym. The garage has a slab floor, a 2.5 m ceiling, two single-pane windows, and an uninsulated garage door. The scope includes electrical work for six outlets and LED lighting, insulation and drywall, rubber flooring, a mini-split heat pump, a power rack, a rower, a treadmill, and a dumbbell set. Quotes are: electrical USD 2,800, insulation and drywall USD 3,500, mini-split USD 4,200, rubber flooring USD 1,800, equipment USD 5,500. The electrical contractor is available in week 1, the drywall contractor in week 3, and the mini-split installer has a six-week lead time. The client wants to train by week 8 and has a 10% contingency.
1. Build the budget, identify the overrun, and recommend specific adjustments.
Read the worked answer
Add the quoted scope: 2,800 + 3,500 + 4,200 + 1,800 + 5,500 = USD 17,800. A 10% contingency on USD 18,000 is USD 1,800, so the total with contingency is USD 19,600. That is USD 1,600 over budget. If the contingency must sit inside the USD 18,000, then only USD 16,200 is available for scope, and the quotes are USD 1,600 over that working budget as well.
Do not solve this by deleting the contingency; that merely hides risk. Options include: reduce the mini-split scope to a smaller capacity unit or a conditioned-air strategy if the load calculation supports it, saving perhaps USD 800–1,000; phase the equipment, buying the rack, dumbbells, and rower first and delaying the treadmill, saving USD 1,200–1,800; use interlocking rubber mats in the training zone instead of full-room flooring, saving USD 700–900; or negotiate a package price with one contractor. The best combination is usually to phase the treadmill and reduce flooring, because neither blocks training. Keep at least USD 1,500 for permits, inspection corrections, freight, and hidden conditions. Update the budget in writing before work starts.
2. Sequence the work and procurement so the client can train by week 8. Identify the critical path.
Read the worked answer
The mini-split lead time is the critical path. Order it in week 1, because a six-week lead means delivery around week 7, leaving little float for installation, startup, and any missing parts. At the same time, order equipment with long lead times and arrange storage offsite so it is not damaged during construction.
A workable sequence: week 1, electrical rough-in and order mini-split and equipment; week 2, electrical inspection and insulation; week 3, drywall; weeks 4–5, taping, painting, and garage-door insulation; week 6, mini-split delivery and line-set/electrical coordination; week 7, mini-split startup and rubber flooring; week 8, equipment delivery, assembly, and first training session. Flooring should follow drywall and HVAC work to avoid dust and damage. If the mini-split slips, training can still start in week 8 with the equipment and a temporary ventilation plan, but the room may not hold temperature. The client should be told that week 8 is achievable only if the mini-split is ordered immediately and the electrical inspection passes on the first attempt.
3. What project controls and risks should be put in place before demolition begins?
Read the worked answer
Use a simple risk register with likelihood, impact, owner, and mitigation. Key risks are permit delay, hidden water damage or slab moisture, mini-split lead-time slippage, contractor no-shows, equipment damage during construction, and budget creep from change orders. Mitigations include confirming permit requirements before demolition, testing the slab for moisture, ordering long-lead items on day one, storing equipment in a dry offsite location, and scheduling weekly site checks with photos.
Control changes in writing. No verbal extras; each change order should state cost, schedule effect, and who approved it. Hold the 10% contingency centrally and release it only for documented scope changes or unforeseen conditions. Keep a procurement log with order dates, delivery dates, and return windows. Protect the electrical rough-in and mini-split line set before drywall. At completion, do a punch list, collect warranties and manuals, confirm final inspection, and test the outlets, lighting, and HVAC before moving equipment in. These controls are what keep a fixed budget and an eight-week training date from becoming an open-ended renovation.