Part B: Cost and Quality Management Plan Name of University Author

This is an effective method of cost estimation (Cost Estimating) Unit $135000 1 Construction Cost (Financing) Unit $400000 1 Construction Cost (Land) Unit $200000 1 Construction Cost (Building) Unit $250000 1 Construction Cost (Building Materials) Unit $200000 1 Construction Cost (Construction Materials) Unit $250000 1 Construction Cost (Construction Materials) Unit $200000 1 Construction Cost (Construction Materials) Unit $200000 1 Construction Cost (Construction Materials) Unit $200000 1 Construction Cost (

Running head: ST DISMASS
Part B: Cost and Quality Management Plan
Name of Student
Name of University
Author Note

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Table of Contents
1. Cost Management Planning.............................................................................................2
1.1. Introduction...............................................................................................................2
1.2. Cost Reporting and Format of Cost Reporting.........................................................2
1.3. Cost Estimation.........................................................................................................3
1.4. Cost Planning Process Management.........................................................................7
1.5. Conclusion................................................................................................................7
2. Quality Management Planning........................................................................................9
2.1. Introduction...............................................................................................................9
2.2. Need of Quality Management Planning...................................................................9
2.3. Roles and Responsibilities........................................................................................9
2.4. Quality Planning Approach....................................................................................10
2.5. Quality Assurance Approach..................................................................................11
2.6. Quality Control Approach......................................................................................11
2.7. Quality Improvement Approach.............................................................................11
2.8. Conclusion..............................................................................................................12
References..........................................................................................................................13

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Part B: Cost and Quality Management Plan
1. Cost Management Planning
1.1. Introduction
Cost management planning refers to the standard process of allocation and controlling the
cost of a project. This process is essential to predict the project expenses and plan the project
expenses in an accurate manner to ascertain that the project does not go over-budget (Harrison,
& Lock, 2017). Detailed cost estimation of the St. Dismas project is needed to be made to
ascertain that the project is accomplished within the set budget. In the following section, the
format of cost reporting, cost estimation and process of project monitoring is discussed.
1.2. Cost Reporting and Format of Cost Reporting
Detailed cost reporting for the St. Dismas is needed to keep a check on the expenditure
and the cash flow associated with the project. Use of reliable cost estimates is needed to be
included in the planning to eliminate the cases of cost variations. Cost estimate for the St.
Dismas project is prepared on basis of the preliminary project budget (Lock, 2017). However,
the CFO of the St Dismas project is quite concerned about the lack of experience of the project
team in development of a project budget and therefore, appropriate cost reporting in this project
becomes a necessity.
Cost reporting is mainly described as a process that is used to inform the client about the
actual project cost. Since the budget estimation is done by an inexperienced team, the cost
reporting for the St. Dismas project is to be carried out at a regular interval.

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The format that will be followed for reporting the cost of the project at regular interval
will include the overall budget of the project phases, the price of the materials, laborers and the
equipment cost (Cheng, 2014). This will provide the project team and the clients a detailed idea
of the total expenditure in a project. The regular cost reporting will be documented and will be
shared with the associated stakeholders.
1.3. Cost Estimation
The parametric cost estimation for the St Dismas project is indicated in the table below-

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Unit Name Cost Variable Cost Per Unit Number of Unit Cost Estimate
Studio Unit Sq. feet 450 20 9000
Bath Unit Sq Feet 600 80 4800
Construction Cost
(Building)
Unit $6743000 1 $6743000
Construction Cost
(Contingency Land)
Unit $674300 1 $674300
Construction Cost
(Land)
Unit $600000 1 $600000
Construction Cost
(Equipment)
Unit $405000 1 $405000
Construction Cost
(Furniture)
Unit $400000 1 $400000
Construction Cost
(Financing)
Unit $202000 1 $202000

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Construction Cost
(Capitalized Interest)
Unit $135000 1 $135000
Construction Cost
(Site Improvement)
Unit $125000 1 $125000
Construction Cost
(Phone and IS
System)
Unit $30000 1 $30000
Construction Cost
(Kitchen Equipment)
Unit $30000 1 $30000
Organization Cost
(Legal and
Accounting)
Unit $25000 1 $25000
Organization Cost
(Initial Marketing)
Unit $250000 1 $250000
Organization Cost
(Project Consultant)
Unit $80000 1 $80000
Organization Cost Unit $20000 1 $20000

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(Follow up market
survey)
Total Organization
Cost
Unit $375000 1 $375000
Table 1: Preliminary Cost estimate of the St. Dismas Project
The table above identifies the preliminary cost estimate of the construction of the new unit in St. Dismas. Any delay in the
execution of the project or any issue in achieving the desired quality of the project can result in the project going over-budget.

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1.4. Cost Planning Process Management
The process management of the cost planning process involves planned stages of cost
estimation, development of the project budget along with monitoring and controlling the project
cost.
Estimating Cost: A parametric cost estimation technique is chosen to estimate the total cost of
construction and for setting up of project budget (Swei, Gregory & Kirchain, 2017). This is an
effective cost estimation method as in this particular technique the cost is calculated on basis of
the parameters including complexity and the risk.
Developing Budget: The budget development process of St Dismas project is associated with
analysis of the construction complexity, resource availability and the resources needed in the
project. Along with that, an analogous estimation of the cost is further undertaken to compare the
set budget with the similar projects that have been conducted in the past to provide the team with
a precise budget estimation.
Monitoring and Controlling: The cash outflow of the project will be monitored by comparing
the planned project with the executed project in a particular date (Fleming & Koppelman, 2016).
If any discrepancy arises, the project team needs to control the cost by speeding up the project
execution process so that the entire project is completed on time.
1.5. Conclusion
Cost planning is an essential need of St Dismas project as the success of the project is
largely dependent on its delivery on time and within the set budget. The use of parametric

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estimation ensures that an accurate budget for the project is set. Effective project monitoring and
control in however recommended to guarantee that the entire project is accomplished within the
set budget.

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2. Quality Management Planning
2.1. Introduction
The quality management planning is equally important for the St. Dismas project as it
will help in easier monitoring of the project progress. The quality management process hold
foremost importance in identifying of the quality needs and the quality standards associated with
the project (Ingason, 2015). In the following sub sections, the need of quality management
planning, the roles and responsibility of planning the quality management process, the approach
and the monitoring process are discussed.
2.2. Need of Quality Management Planning
The quality management planning is needed for St Dismas and the entire project team
contains several inexperienced members. Furthermore, the project is being proposed to enhance
the business opportunity of St. Dismas. The quality management planning in the project will
further contribute to providing an efficient and a productive work environment to the team of St.
Dismas. One of the essential part of the quality management planning is to monitor the execution
process of the project to have a good control on the project progress (Goetsch & Davis, 2014).
This further helps in identifying whether the project is proceeding as per plan.
Quality management planning for St. Dismas is further needed to define the quality
policies and the procedures that are applicable to the undertaken project for meeting the set
deliverables of the project.
2.3. Roles and Responsibilities

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The key role of quality management planning for the ST Dismas project is provided to
the quality manager and the project manager. The detailed role and responsibility in relation to
the quality planning is indicated in the table below-
Roles Responsibility
1. Project Manager The project manager is accountable for
defining the quality standard for execution of
the entire project.
2. Quality Manager Quality manager is accountable for defining
the overall quality standard of the St. Dismas
project.
3. CFO The CFO is responsible for estimating the
operating cost of the project and for assigning
the quality standard
4. Facility Manager Has the responsibility of preparing the action
plan for the building and will be responsible
for defining the quality control process of
construction
2.4. Quality Planning Approach
The approach of quality planning that is proposed for St. Dismas include development of
a quality standard for the project execution and monitoring the project to check if the expected

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quality standard is achieved. The quality plan is incorporated in the undertaken project plan to
ascertain that expected project quality is achieved right from the start of the project.
2.5. Quality Assurance Approach
Quality assurance in St. Dismas project holds paramount importance as the project is
being implemented to improve the current business process of St. Dismas. The quality assurance
process involves functions of three core quality assurance process that include describing the
quality, measuring the quality and refining the quality (Radujković & Sjekavica, 2017). The
quality of the project is defined at the initiation stage, it will be measured and improved at the
execution stage.
2.6. Quality Control Approach
The project’s quality will be controlled by proper project supervision. The entire
construction process of the new building is needed to be well supervised to ensure that the
project is being executed as per the expected quality standard (Todorović et al. 2015). Apart
from that any issues in execution of the project as per the set quality standard should be reported
to the project manager to take prompt action on the issue. The quality management process is
prioritized in St Dismas project by enforcing proper quality control.
Quality control is an essential aspect of managing a project as delivery of project on
substandard quality might require rework on the project leading to an exponential increase in the
project cost. Hence, the project team of St. Dismas ensured that execution phase of the project is
rightly monitored so that the project is delivered in accordance to the set standard.
2.7. Quality Improvement Approach

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Delivery of a high quality project is necessary for St Dismas as the project is being
executed with an aim of improving the current business processes of St Dismas. The quality
improvement approach that is proposed for managing the entire process of St. Dismas is testing
the project deliverables at a regular interval (Basu, 2014). The enforcement of proper project
supervision will ascertain that the expected quality standard of the construction works are
achieved. Quality improvement process will be opted in the project by generation of quality
control reports and enforcing improvements as per the set quality standard.
2.8. Conclusion
The quality management planning process for the St Dismas project involves
development of a working plan for supervision of the entire project work. Proper project
supervision is needed to ensure that the project is delivered as per the expected quality standard.

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References
Basu, R. (2014). Managing quality in projects: An empirical study. International journal of
project management, 32(1), 178-187.
Cheng, Y. M. (2014). An exploration into cost-influencing factors on construction
projects. International Journal of Project Management, 32(5), 850-860.
Fleming, Q. W., & Koppelman, J. M. (2016, December). Earned value project management.
Project Management Institute.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Harrison, F., & Lock, D. (2017). Advanced project management: a structured approach.
Routledge.
Ingason, H. T. (2015). Best project management practices in the implementation of an ISO 9001
quality management system. Procedia-Social and Behavioral Sciences, 194(3), 192-200.
Lock, D. (2017). The essentials of project management. Routledge.
Radujković, M., & Sjekavica, M. (2017). Project management success factors. Procedia
engineering, 196, 607-615.
Swei, O., Gregory, J., & Kirchain, R. (2017). Construction cost estimation: A parametric
approach for better estimates of expected cost and variation. Transportation Research
Part B: Methodological, 101, 295-305.

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Todorović, M. L., Petrović, D. Č., Mihić, M. M., Obradović, V. L., & Bushuyev, S. D. (2015).
Project success analysis framework: A knowledge-based approach in project
management. International Journal of Project Management, 33(4), 772-783.