You are the project manager in the water and sanitation department in Johannesburg. The suburb of Soweto has recently come into the spotlight due to the lack of water reticulation in the southern part. Residents have approached the president of South Africa to voice their discontent. The president has met with the mayor of Johannesburg and indicated that the water infrastructure needs to be built and ready for service in six months' time. There cannot be any slippage to the timeline, must deliver within budget, with the resources allocated, and within the predetermined quality standards. As the project manager, your mandate is to work with all stakeholders to deliver or risk losing your job.

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QUESTION 4 (20 Marks)

Project costs need to be categorized correctly to enable strict management of all project costs during the project lifecycle. Appraise the different project cost types for your project so that your finance department can provide you with the support you require in managing each cost. Ensure that examples of each type are provided with your discussion.