Milestone 4: Project Budgeting

Mark Hudson and his team are working on the Recreation and Wellness Intranet Project. They have been asked to refine the existing cost estimate for the project so they can evaluate supplier bids and have a solid cost baseline for evaluating project performance. Recall that you as the leader of development of health information resources & systems have a schedule and cost goals which are to complete the project in six months for under $200,000.

Tasks

Prepare and submit a one-page cost model for the project described in the Running Case (using the template provided), similar to the model provided in Figure 5-25. Use the following WBS, and be sure to document your assumptions in preparing the cost model. Assume a labor rate of $100/hour for the project manager and $60/hour for other project team members. Assume that none of the work is outsourced, labor costs for users are not included, and there are no additional hardware costs. The total estimate should be $200,000.

Project management

Requirements definition

Web site design

3.1 Registration for recreational programs

3.2 Registration for classes and programs

3.3 Tracking system

3.4 Incentive system

Web site development

4.1 Registration for recreational programs

4.2 Registration for classes and programs

4.3 Tracking system

4.4 Incentive system

Testing

Training, rollout, and support

Using the cost model you created in Task 1, prepare a cost baseline (using the template provided) by allocating the costs by WBS for each month of the project.

Cost Estimate
Project Name:	Date:
Note: Enter your WBS, hours, labor rates, etc. Add/delete rows and columns as needed and check all formulas (bolded below).
	Internal	$/hour	Internal	External	$/hour	External	Total	Non-labor $	Total Cost
WBS Categories	Labor		$ Total	Labor		$ Total	Labor
1. Initiating									$ -
2. Planning									$ -
3. Executing									$ -
3.1 Course design and development									$ -
3.1.1 Supplier management training									$ -
3.1.2 Negotiating skills training									$ -
3.1.3 Project management training									$ -
3.1.4 Software applications training									$ -
3.2 Course administration									$ -
3.3.Course evaluation									$ -
3.4 Stakeholder communications									$ -
4. Monitoring and Controlling									$ -
5. Closing									$ -
Subtotal									$ -
Reserves									-
Total	-		-	-	-	-	-	-	$ -
Assumptions