MAN400 - Introduction to Project Management

Group Assignment #2 - Project Budget

You and your team received approval to move forward with the build and execution of the project. The client approved your scope (as depicted in your WBS). Now it's time to determine how much it will cost to deliver this project's scope. In other words, we're building the project's budget.

1. Your first step is to create the structure of your budget. Please use Microsoft Excel and the WBS provided.

1. Your second step is to estimate the labour and non-labour costs.

Estimating labour costs requires you to estimate how long the work will take (durations) and how much you will pay the people performing the work. Similar to the project schedule, use the duration estimates provided in Table 1.

As a group, determine the hourly rates for the human resources required.

With respect to the non-labour costs of this project, consider construction equipment, additional tools, or other fees associated with the build (permits). This is not meant to be an exhaustive list. The objective is to simply help you brainstorm the typical non-labour costs associated with a project of this kind.

1. Your third step is to create the total budget

This requires you to sum up the costs of each major deliverable. Create subtotals at the major deliverable level. Create subtotals for the labour and non-labour costs as well. Use formulas whenever possible so you fully harness the power of Microsoft Excel.

Establish a reasonable contingency for this project. You are free to make any assumptions you like; simply ensure they are well documented.

1. Your final step is to create the time-phased budget.

As discussed in class, the objective of the time-phased budget is to determine the cash flow needs of the project. In order to create a time-phased budget, you need to consider when the work will be done.Refer to Table 1 below for guidance.

With respect to contingencies, it is acceptable to include them at the beginning of the project, end of the project or spread them out over the project's duration. As a team, decide which approach you feel is most appropriate. Lastly, ensure your time-phased budget has the same total cost as your aggregate budget.

Table 1 - Required deliverables, durations.

(*please chose your own predecessors based on feedback from initial assignment)

Work Package Task Name Duration (days) Project Management Draft Project Plan 25 Finalize Scope of work 2 Plan resources 6 Plan materials 6 *Project Management complete Assemble Team Determine required members Recruit resources and SMEs Establish Project Definition Project Team Code of 0 Conduct Sign OffFoundation Draw Blueprint 10 Seek approval of blueprint 3 Break ground and dig earth 30 Acquire materials, labour 10 Lay concrete 4 *Foundation complete 0 Building Acquire additional materials 7 Construction Construct pillars 10 Construct Walls 5 Install Roof 10 Install Plumbing 15 Install Flooring 15 Install Electrical 15 *Building construction 0 complete Interior Design interiors 30 Procure furnishings 5 Procure light fixtures 5 Install furnishings 14 Install light fixtures 14 *Interior complete 0 Exterior Design landscaping 30 Install gate and fencing 10 Install infinity pool 50 Install helicopter pad 2 *Exterior complete 0 Move in date 0