Scenario You recently were hired as a project manager for a company that builds and operates large shopping centers around the United States Your company is planning a large mall in your town, and part of the town's approval process consists of a public meeting where the project will be presented to the community You have been asked by your project sponsor to estimate the cost of that public meeting work package Public meetings for other shopping centers have cost approximately $30,000, and your sponsor has asked that you not exceed this amount Your estimate must include direct labor and overhead costs (burdened rate) for each in house staff resource The standard hourly burdened rate for in house staff is averaged to a flat $80 There are five activities associated with the public meeting, and you have estimated the components of each activity in the data file, Public Meeting Estimate document New Shopping Center Public Meeting Estimate Activity Description Expense Estimates Conduct Planning Meetings Four 2 hour planning meetings are scheduled, each with 15 key team members in attendance Two of the meetings will be catered lunch meetings Internal labor 120 hours Catered lunches $15 00 per person Arrange Location Research to locate a suitable facility Rent necessary equipment Internal labor 20 hours Facility rent 5,000 sq ft at $0 40 to $0 50 each Equipment rent 600 chairs at $0 25 to $0 40 each Equipment rent 3 Large Monitors at $200 00 each per hour for two hours Arrange Staffing Coordinate all staff and travel for the public meeting Internal labor 50 hours Travel 1 panel member from Florida at approximately $1,000 00 Moderator Standard fee of $500 00 for the 2 hour event Security 6 guards for 4 hours at $50 00 per hour Publicize Event Design, print, and mail 10,000 postcards Newspaper advertising Internal labor 60 hours Postcards Printing and postal charges at $0 20 to $0 25 each Advertising $1,000 00 flat fee Hold Event Requirements as needed to set up for, hold, and clean up after the event Internal labor 35 hours Additional 2 speakers at $50 00 each per hour for 2 hours What technique did you use to estimate the cost of the Conduct Planning Meetings activity Why is this technique beneficial Which estimating technique was used for the Arrange Staffing activity What is the degree of certainty of your cost estimate now Do you need to take any action regarding the sponsor's target of $30,000 If so, what action should you take

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Scenario You recently were hired as a project manager for a company that builds and operates large shopping centers around the United States. Your company

Scenario

You recently were hired as a project manager for a company that builds and operates large shopping centers around the United States. Your company is planning a large mall in your town, and part of the town's approval process consists of a public meeting where the project will be presented to the community. You have been asked by your project sponsor to estimate the cost of that public meeting work package.

Public meetings for other shopping centers have cost approximately $30,000, and your sponsor has asked that you not exceed this amount. Your estimate must include direct labor and overhead costs (burdened rate) for each in-house staff resource. The standard hourly burdened rate for in-house staff is averaged to a flat $80.

There are five activities associated with the public meeting, and you have estimated the components of each activity in the data file, Public Meeting Estimate document.

New Shopping Center

Public Meeting Estimate

Activity	Description	Expense Estimates
Conduct Planning Meetings	Four 2-hour planning meetings are scheduled, each with 15 key team members in attendance. Two of the meetings will be catered lunch meetings.	Internal labor: 120 hours. Catered lunches: $15.00 per person.
Arrange Location	Research to locate a suitable facility. Rent necessary equipment.	Internal labor: 20 hours. Facility rent: 5,000 sq. ft. at $0.40 to $0.50 each. Equipment rent: 600 chairs at $0.25 to $0.40 each. Equipment rent: 3 Large Monitors at $200.00 each per hour for two hours.
Arrange Staffing	Coordinate all staff and travel for the public meeting.	Internal labor: 50 hours. Travel: 1 panel member from Florida at approximately $1,000.00. Moderator: Standard fee of $500.00 for the 2-hour event. Security: 6 guards for 4 hours at $50.00 per hour.
Publicize Event	Design, print, and mail 10,000 postcards. Newspaper advertising.	Internal labor: 60 hours. Postcards: Printing and postal charges at $0.20 to $0.25 each. Advertising: $1,000.00 flat fee.
Hold Event	Requirements as needed to set up for, hold, and clean up after the event.	Internal labor: 35 hours. Additional: 2 speakers at $50.00 each per hour for 2 hours.

What technique did you use to estimate the cost of the Conduct Planning Meetings activity? Why is this technique beneficial?
Which estimating technique was used for the Arrange Staffing activity?
What is the degree of certainty of your cost estimate now?
Do you need to take any action regarding the sponsor's target of $30,000? If so, what action should you take?