A road construction company contracted with a state government to replace a 50-foot long and 20 foot high, 2-lane bridge. The state has requested that this project be completed in 250 days.

Main project activities:

• New bridge installed next to old bridge
• Highway approach moved to new bridge to direct traffic across new structure
• Highway markings added and modified
• Old bridge demolition

When analyzing the project the contractor identifies the following weather risks:

1. Extreme winds during scheduled periods for crane operation 
   a. Wind >25mph
   b. Cost $2,500 per delay day
2. High temperatures during concrete pour periods
   a. Temperature > 90°F
   b. Cost $10,000 per delay day
3. Low temperatures during concrete pour periods
   a. Temperature < 32°F
   b. Cost $10,000 per delay day
4. Excessive precipitation delays concrete pouring
   a. Precipitation >Daily 1/10th inch
   b. Cost $10,000 per delay day
5. Precipitation causes worker delay
   a. Precipitation > Daily 1/10th inch
   b. Cost $5,000 per delay day

Structure: 

To most accurately cover their risk the company decided to create structures for specific time periods based on their activity schedule.

1. Wind Structure -- The contractor has budgeted for 3 delay days during the crane operation period. For each wind delay day more than 3 they receive a payment of $2,500

2. High Temperature Structure – The contractor has budgeted for 5 delay days due to high temperatures during the concrete pouring periods. For each high temperature delay day more than 5 they receive a payment of $10,000.

3. Low Temperature Structure – The contractor has budgeted for 5 delay days due to low temperatures during the concrete pouring periods. For each low temperature delay day more than 5 they receive a payment of $10,000.

4. Excessive Precipitation – Since precipitation can cause activity delay for almost any activity in the project schedule, this covers the entire project period. The contractor has budgeted for 10 delay days due to precipitation. For each precipitation delay they receive a payment $15,000.