Construction Planning and Management
If to, tp and tm are the optimistic, pessimistic and most likely time estimates of an activity respectively, the expected time t of the activity will be

to + 4tm+ tp/6
to + 4tm+ tp/4
to + 4tm+ tp/5
to + 3tm+ tp/3

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Construction Planning and Management
During the construction period, price variation clause in contracts caters to

Increase in rates of only important materials
Variation in cost in materials element, labour element and petrol-oil-lubricant element
Rate of inflation
Variation in total cost of the project on an ad hoc basis

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Construction Planning and Management
The reduction in project time normally results in

Increasing the direct cost and indirect cost both
Decreasing the direct cost and increasing indirect cost
Decreasing the direct cost and indirect cost both
Increasing the direct cost and decreasing the indirect cost

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