You are the project manager of a deck-building project. You are about to estimate costs, and immediately after, you need to determine the budget.

The project plan has listed five estimation techniques (analogous, parametric, bottom-up, three-point estimate (PERT) and reserve analysis) as the techniques to be used. During your calculations please specify the technique used in each case. The cost management plan also shows control accounts are on level 1 of the WBS, precision levels are 0 decimals (round up) and management reserve is 5% (of your cost baseline) based on company policy.

For the estimation process, you have gathered the following information:

• For the preparation of the site, you have been quoted, $256 and $300 for clearing site and debris removal respectively.
• You worked on a similar project a month ago, 0nly twice the area, and the dig of the footings cost $2,000.
• The building of the frame and the laying of the deck will take 5 human resources at $17 an hour for 3 days (8 hours a day) and the material was quoted as $2500
• A new hire of the company will perform the sealing of lumber. You asked for three estimates as it is your first time working with the new employee. He said the longest it will take him to perform this task is 5 days, the shortest is 1. However, in his experience, it should take 4 days. He will get paid $17 an hour (8 hours a day) and the total cost of material is $500.

• The scrap removal was estimated to cost $1,000 but there was risk identified. During the quantitative risk analysis, this task presented 50% cost increase if the risk happens. The risk had a 60% chance of happening.

1) What are the estimates of each control account? Show your work and specify the type of estimate used.

Site Preparation =

Construct Deck =

2) What is the Total cost of the project?

3) What is the Cost Baseline? is there any applicable contingency reserve?

4) How much is the Management Reserve?

5) What is the Total Budget?