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You are given the responsibility to supervise a construction project. The project is expected to be completed in 1 0 - month time. The following
You are given the responsibility to supervise a construction project. The project is
expected to be completed in month time. The following data represents the information
compiled by the project team for planning purpose. The planned progress schedule and
the estimated budget before the project starts is shown in Table below:
Table : Budgeted Cost and Planned Project Schedule.
Table below shows the information on the progress at sile and the cost incurred by the
company at the end of fifth month.
Table : Progress and Cost Incurred at The End of Fifth Month.
a Explain the status of the project in terms of the progress and cost performance.
Show your calculation. Identify the possible cause of problems.
marks
b Determine the total estimated cost at completion. Recommend the amount of
money required to complete the project to the client. Inform the client your main
assumption made in your calculation.
marks
c It has been identified that one of the biggest contributors to the cost variance in the
above project is caused by the machineries. Give possible reasons for the cost
variance. Give your recommendation on the way to improve the situations.
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