Appendix C | BUSINESS PLAN FOR PROJECT DEVELOPMENT | 251-5-plumbing: Install new water and gas pipe, install new water heater, use
existing sinks and tub, but install new faucets and toilet
Low bid from Smith Brothers, 114 Prince William St., Gary, Indiana $ 12,998
electrical: Pull new wiring throughout, install good quality fixtures and
outlets, using existing boxes and wall holes wherever possible, all to code
Frank Rochioloi, Chicago, lllinois 4,006
roof: Install four-ply roof over entire house with 20-year guarantee, to code
Johnson Roofing, Chicago, Illinois 800
Flooring and Carpeting: Repair flooring and install new wall-to-wall
carpeting and/or linoleum throughout
Acme Floors, Chicago, Illinois 4,958
Kitchen Cabinets: Build and install new cabinets in kitchen
Urizola Cabinets, Chicago, Illinois 1,995
range and refrigerator:
Gordon’s Appliances, Chicago, Illinois 1,398Total Bid items $26,155I plan to do some of the cosmetic work myself during the three months construction
time. That work will include painting inside and out, replacing window glass, and other
miscellaneous items as the need arises. Cost of materials for those items will be about $500.
Building permits and fees for the electrical, plumbing, and roof work will add another $500.
This will put the total costs, excluding finance costs, at $18,155. As seen on the project
profit and loss projection that follows, I have estimated financing and other costs to total
an additional $10,200.
In making my financial projections, I made the following assumptions:
• The house will be sold within six months of the start of construction, and the
Joneses’ note will then be paid off. (The interest portion of this $800 note is $550.)