You are working on a project to build a new home. You are now at point of the estimating costs, and immediately after you need

to determine your budget.

The project plan has listed four estimation techniques (analogous, parametric, bottom-up and three-point estimate PERT) as the

techniques to be used. The cost plan also has the level 1 of the WBS as the control accounts and Allowed 5% Management

Reserve based on top management decision. There are contingency reserves where applicable that have been added.

Determine the total budget based upon below

During the estimation process you have gathered the following information:

• The company where you work has built other houses in the same neighbourhood last year, and the historical data from one of a similar size shows the cost of designing (draft and updates) was $2500 total. The complete landscaping was $1200.
• The structure will be outsourced to the company that has been building houses in this area this past year and have given you the following estimates: Excavation (inc. Levelling)=$10,000, Foundation=$8,000, Framing=$7,000, Dry walling=$5,000 and Roof (inc. finishes)= $10,000. Each component estimate has an identified risk of $1000, $900, $700, $600 and $1500 (respectively) occurring and a 30% chance of occurring. Be sure to add in these contingency re
• For the plumbing, your company will provide a new contract employee that makes $80 an hour and has given you an estimated time of completion of 20 hours and material cost of $1800. His overhead is 50%. As it is your first time working with him, you asked him to give you a pessimistic and optimistic estimate also (28 hrs and 18 hrs). For contingency costing purposes, you are to place his cost of the task at 85% probability of completion time.
• The electrical piece will be performed by a resource from the company that is currently working on another that should finish before starting working with you. This electrician has given you an estimate of $1,500 for the complete job. A risk has been identified for this activity that was assessed to cost $500. It has a 40% chance of occurring, (What is the contingency put aside for this risk?)
• Painting: Material = $350, 2 human resources required @ $25 an hour for of 15 hours each.
• Windows: 3 windows @ $120, 3 windows @ $60 and installation = $500