Bungalow Project: Cost and Quality Management Planning

This document discusses the cost and quality management planning for a bungalow project. It explains the relationship between project cost and quality, and provides tools and techniques for quality planning. The document also includes a detailed breakdown of labor and material costs for the project.

Running Head: PROJECT MANAGEMENT
Bungalow Project: Cost and Quality Management Planning
Name of the Student
Name of the University

1PROJECT MANAGEMENT
Table of Contents
Part A...............................................................................................................................................2
Part B...............................................................................................................................................3
Cost Planning...............................................................................................................................3
Quality Management Planning....................................................................................................7
References........................................................................................................................................9

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Part A
Quality on a project is defined as the measure of the outcomes that are generated from the
project. Generally, the quality of the project is determined through the quality of the outcome
generated but it also depends on the three main variables of the project – time, scope and cost
(Mir & Pinnington, 2014). In other words, the quality of the project depends significantly on the
time, scope and cost of the project and change in any one of these variables can affect the quality
of the project significantly. For instance, if the cost of the project is increased, the quality of the
project can also increase whereas if the scope is increased keeping cost and time same, the
quality of the project will decrease.
There are several tools and techniques that can be used for quality planning of a project.
Some of these tools and techniques are listed as follows.
 Cause and Effect Diagram (Fishbone / Ishikawa Diagram)
 Pareto Charts
 Histograms
 Flowcharts
 Gantt Chart
 Control Charts
Project cost has significant relationship with the quality of a project. With greater quality
requirement, the cost increases whereas in case of low cost, the quality of the project decreases
significantly (Kerzner & Kerzner, 2017). Again, poor quality of a project may also increase the
cost of a project. For instance, in a project in spite of investing the project amount, the quality of

3PROJECT MANAGEMENT
the project is poor and hence, the project has to be redone / modified that will further increase the
cost of the project.
Part B
Cost Planning
In the given project, there are two different types of costs involved – material and plant
costs and human labour costs (Schwalbe, 2015). The human labour costs are determined using
the work breakdown structure and bottom up estimation technique as shown in the following
table.
WBS Task Name Duration Resource Names Cost
0 Bungalow Project 60 wks $251,460.00
1 Preliminary 51 wks $193,950.00
1.1 Design Structure 2 wks Tradesman $3,600.00
1.2 Appoint Project Manager 48 wks Tradesman [50%] $43,200.00
1.3 Modify Changes 1 wk Tradesman [25%] $450.00
1.4 Conduct Soil Test 2 wks $0.00
1.5 Receive Client Design Approval 1 wk Tradesman [50%] $900.00
1.6 Draw Plans and Schedules 2 wks Tradesman $3,600.00
1.7 Attain Engineer Certification 2 wks $0.00
1.8 Submit Plans to Local Council 6 wks $0.00
1.9 Prepare and Submit Application to QBCC 1 wk Tradesman $1,800.00
1.10 Select Insurance Package 2 wks Tradesman $3,600.00
1.11 Engage the Project Management Team 38 wks Tradesman [200%] $136,800.00
2 Site 49 wks $4,200.00
2.1 Erect Temporary Fencing 1 wk $0.00
2.2 Install Portaloo to Site 48 wks $0.00

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2.3 Install Temporary Power Pole 1 wk $0.00
2.4 Install Water Point 1 wk $0.00
2.5 Power and Water Construction Costs 1 wk Labourers [50%], Tradesman
[50%] $1,500.00
2.6 Clear Ground 1 wk Tradesman [20%] $360.00
2.7 Set Out the Dwelling 1 wk Labourers [50%], Tradesman
[50%] $1,500.00
2.8 Dig Foundations 3 wks $0.00
2.9 Foundation Inspection 1 wk Labourers [20%] $240.00
2.10 Install Trench Mesh 1 wk Labourers [20%], Tradesman
[20%] $600.00
2.11 Pour Footings 1 wk $0.00
3 Building (To Lock Up) 13.5 wks $33,630.00
3.1 Erect Double Brick External Wall System 3 wks Labourers, Tradesman $9,000.00
3.2 Door and Window Frames 1 wk Labourers [50%], Tradesman
[50%] $1,500.00
3.3 Glazing 1 wk $0.00
3.4 Install Floor Joists 1 wk Tradesman [50%] $900.00
3.5 Erect internal timber frame, floors and walls 3 wks Labourers [50%], Tradesman
[50%] $4,500.00
3.6 Install roof trusses and battens 3 wks Tradesman [80%] $4,320.00
3.7 Install Roof Rail 2.5 wks Labourers [20%], Tradesman
[20%] $1,500.00
3.8 Ceiling Joists 1 wk Labourers [50%], Tradesman
[50%] $1,500.00
3.9 Fit T & G Strip Flooring 1 wk Labourers [75%], Tradesman
[75%] $2,250.00
3.10 Install Guttering 1 wk Tradesman [20%] $360.00
3.11 Fit Roof Tiles 2 wks Labourers, Tradesman $6,000.00
3.12 Rough in Electrical 1 wk Tradesman [50%] $900.00
3.13 Rough in Plumbing 1 wk Tradesman [50%] $900.00
4 Building (Handover) 10 wks $19,680.00
4.1 Install Insulation 1 wk Labourers [50%] $600.00
4.2 Plaster Ceiling 1 wk $0.00
4.3 Plaster Walls 1 wk $0.00

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4.4 Crane Lift Shell into Place 0.2 wks $0.00
4.5 Install and Connect Swimming Pool Shell /
Pump 3 wks $0.00
4.6 Conduct Second Fix 2 wks Labourers, Tradesman $6,000.00
4.7 Tiles 4 wks Tradesman $7,200.00
4.8 Paint Walls and Ceilings 2 wks $0.00
4.9 Fit Off Electrical Points and Appliances 2 wks $0.00
4.10 Fit Off Plumbing Points 2 wks $0.00
4.11 Install Downpipes and Connect to Storm
Water 2 wks Tradesman [10%] $360.00
4.12 Landscape the Site 3 wks Labourers [50%], Tradesman
[50%] $4,500.00
4.13 Connection to Sewer 1 wk Tradesman [10%] $180.00
4.14 Connection to Water Supply 1 wk Tradesman [10%] $180.00
4.15 Connection to Power Supply 1 wk Tradesman [20%] $360.00
4.16 Clean Site 1 wk Labourers [25%] $300.00
4.17 Client Handover 1 wk $0.00
4.18 Mortgage Holder Inspection 1 wk $0.00
Hence, the total labour cost based on the most likely durations for the project is found to
be $251,460.
Again, for the material and plant costs, using three point estimation technique, the
detailed data is shown in the following table.
Activity #
Units
Unit Plant Material/
FC
Total Cost Optimistic Cost Pessimistic Cost Most likely Cost Mean
1
1.1 2 $
2,250.00
- - $
4,500.00
$ 3,600.00 $
6,750.00
$
4,500.00
$
4,950.00
1.2 48 $
1,350.00
- - $
64,800.00
$
51,840.00
$
97,200.00
$
64,800.00
$
71,280.00
1.3 0.25 $
2,250.00
- - $ 562.50 $ 450.00 $
843.75
$ 562.50 $ 618.75
1.4 1 $
450.00
- $
450.00
$ 900.00 $ 720.00 $
1,350.00
$ 900.00 $ 990.00
1.5 0.25 $
2,250.00
- - $ 562.50 $ 450.00 $
843.75
$ 562.50 $ 618.75
1.6 0.5 $
2,250.00
- - $
1,125.00
$ 900.00 $
1,687.50
$
1,125.00
$
1,237.50
1.7 1 $
-
$
650.00
- $ 650.00 $ 520.00 $
975.00
$ 650.00 $ 715.00
1.8 6 $
700.00
- $
700.00
$
4,900.00
$ 3,920.00 $
7,350.00
$
4,900.00
$
5,390.00

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1.9 2 $
400.00
$
400.00
$
1,200.00
$ 960.00 $
1,800.00
$
1,200.00
$
1,320.00
1.1 38 $
20.00
- $
760.00
$
1,520.00
$ 1,216.00 $
2,280.00
$
1,520.00
$
1,672.00
1.11 38 $
1,538.00
- - $
58,444.00
$
46,755.20
$
87,666.00
$
58,444.00
$
64,288.40
2 $ - $ - $ - $ - $ -
2.1 48 $
16.00
$
768.00
- $
1,536.00
$ 1,228.80 $
2,304.00
$
1,536.00
$
1,689.60
2.2 48 $
11.00
$
528.00
- $
1,056.00
$ 844.80 $
1,584.00
$
1,056.00
$
1,161.60
2.3 48 $
8.50
$
408.00
- $ 816.00 $ 652.80 $
1,224.00
$ 816.00 $ 897.60
2.4 1 $
350.00
$
350.00
- $ 700.00 $ 560.00 $
1,050.00
$ 700.00 $ 770.00
2.5 48 $
10.50
- $
504.00
$
1,008.00
$ 806.40 $
1,512.00
$
1,008.00
$
1,108.80
2.6 0.5 $
3,750.00
- - $
1,875.00
$ 1,500.00 $
2,812.50
$
1,875.00
$
2,062.50
2.7 0.2 $
2,250.00
- - $ 450.00 $ 360.00 $
675.00
$ 450.00 $ 495.00
2.8 0.5 $
2,250.00
- - $
1,125.00
$ 900.00 $
1,687.50
$
1,125.00
$
1,237.50
2.9 1 $
-
- - $ - $ - $ - $ - $ -
2.1 0.2 $
1,500.00
- $
500.00
$ 800.00 $ 640.00 $
1,200.00
$ 800.00 $ 880.00
2.11 0.2 $
3,750.00
- $
1,400.00
$
2,150.00
$ 1,720.00 $
3,225.00
$
2,150.00
$
2,365.00
3 $ - $ - $ - $ - $ -
3.1 2 $
3,750.00
- $
4,200.00
$
11,700.00
$ 9,360.00 $
17,550.00
$
11,700.00
$
12,870.00
3.2 1 $
-
- $
2,100.00
$
2,100.00
$ 1,680.00 $
3,150.00
$
2,100.00
$
2,310.00
3.3 1 $
1,500.00
- $
1,200.00
$
2,700.00
$ 2,160.00 $
4,050.00
$
2,700.00
$
2,970.00
3.4 0.5 $
2,250.00
- $
750.00
$
1,875.00
$ 1,500.00 $
2,812.50
$
1,875.00
$
2,062.50
3.5 0.5 $
3,750.00
- $
2,625.00
$
4,500.00
$ 3,600.00 $
6,750.00
$
4,500.00
$
4,950.00
3.6 0.8 $
2,250.00
- $
800.00
$
2,600.00
$ 2,080.00 $
3,900.00
$
2,600.00
$
2,860.00
3.7 2.5 $
120.00
$
300.00
- $ 600.00 $ 480.00 $
900.00
$ 600.00 $ 660.00
3.8 1 $
3,750.00
- $
500.00
$
4,250.00
$ 3,400.00 $
6,375.00
$
4,250.00
$
4,675.00
3.9 0.75 $
2,812.50
- $
4,000.00
$
6,109.38
$ 4,887.50 $
9,164.06
$
6,109.38
$
6,720.31
3.1 0.2 $
2,250.00
- $
600.00
$
1,050.00
$ 840.00 $
1,575.00
$
1,050.00
$
1,155.00
3.11 1 $
3,750.00
- $
4,200.00
$
7,950.00
$ 6,360.00 $
11,925.00
$
7,950.00
$
8,745.00
3.12 1 $
-
- - $ - $ - $ - $ - $ -
3.13 1 $
-
- - $ - $ - $ - $ - $ -
4 $ - $ - $ - $ - $ -
4.1 0.5 $
1,500.00
- $
650.00
$
1,400.00
$ 1,120.00 $
2,100.00
$
1,400.00
$
1,540.00
4.2 1 $
-
$
3,200.00
- $
3,200.00
$ 2,560.00 $
4,800.00
$
3,200.00
$
3,520.00
4.3 1 $
4,000.00
$
3,600.00
- $
7,600.00
$ 6,080.00 $
11,400.00
$
7,600.00
$
8,360.00
4.4 1 $
800.00
$
800.00
- $
1,600.00
$ 1,280.00 $
2,400.00
$
1,600.00
$
1,760.00
4.5 1 $
11,200.00
$
11,200.00
- $
22,400.00
$
17,920.00
$
33,600.00
$
22,400.00
$
24,640.00
4.6 1 $
3,750.00
$
2,800.00
$
6,550.00
$ 5,240.00 $
9,825.00
$
6,550.00
$
7,205.00
4.7 1 $
7,500.00
$
7,500.00
- $
15,000.00
$
12,000.00
$
22,500.00
$
15,000.00
$
16,500.00
4.8 1 $
3,750.00
$
1,200.00
$
4,950.00
$ 3,960.00 $
7,425.00
$
4,950.00
$
5,445.00
4.9 1 $
-
$
4,200.00
- $
4,200.00
$ 3,360.00 $
6,300.00
$
4,200.00
$
4,620.00
4.1 1 $
4,000.00
$
4,000.00
- $
8,000.00
$ 6,400.00 $
12,000.00
$
8,000.00
$
8,800.00
4.11 0.1 $
2,250.00
- $
150.00
$ 375.00 $ 300.00 $
562.50
$ 375.00 $ 412.50

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4.12 1 $
1,875.00
- $
1,800.00
$
3,675.00
$ 2,940.00 $
5,512.50
$
3,675.00
$
4,042.50
4.13 0.1 $
2,250.00
- $
400.00
$ 625.00 $ 500.00 $
937.50
$ 625.00 $ 687.50
4.14 0.1 $
-
- - $ - $ - $ - $ - $ -
4.15 0.2 $
2,250.00
- - $ 450.00 $ 360.00 $
675.00
$ 450.00 $ 495.00
4.16 0.25 $
1,500.00
- - $ 375.00 $ 300.00 $
562.50
$ 375.00 $ 412.50
4.17 1 $
-
- - $ - $ - $ - $ - $ -
4.18 1 $
-
- - $ - $ - $ - $ -
TOTA
L
$ 276,514.38 $ 221,211.50 $ 414,771.56 $ 276,514.38 $ 304,165.81
Considering the most likely outcome for the project, the total project material cost is
estimated to be $304,165.
Hence, the total estimated cost for the project considering the most likely situation is $
(251,460 + 304,165) = $555,625.
Quality Management Planning
This project is based on the construction of a bungalow based on the requirements as set
by the client. While there are structural and design specifications already provided for the
bungalow along with the delivery, the client has requested quote for cost of the project that will
also ensure sufficient quality of the outcome (Chen & Luo, 2014). In order to deliver suitable
quality of the bungalow, a quality management planning is required. The objectives of the
quality management plan are as follows.
 To identify appropriate construction elements that will ensure high quality of the
bungalow
 To identify the costs of materials and labour required for delivery of high quality
project within the deadline
 To identify the roles of project team members in quality management of the
project
 To develop quality standards for the project

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In order to ensure the quality for the project outcomes, it is first required to set specific
quality standards including quality of construction, design and final delivery of the bungalow.
Again, after development of the quality standards, it is required to ensure these standards are
applied to the project (Hornstein, 2015). For this, quality monitoring plan needs to be developed
in which, specific stakeholders are assigned to monitor the quality of the project and compliance
with the quality standards set for the project. Finally, at the end of the project, detailed quality
testing is required for reviewing the quality of outcome of the project. If it is found that the
expected quality standard is not met, the project manager can order to reopen the project and
work on improving the project quality. However, that will require additional costs and hence, it
is not desired to deliver poor quality outcome in the project.

9PROJECT MANAGEMENT
References
Chen, L., & Luo, H. (2014). A BIM-based construction quality management model and its
applications. Automation in construction, 46, 64-73.
Crawford, J. K. (2014). Project management maturity model. Auerbach Publications.
Fleming, Q. W., & Koppelman, J. M. (2016, December). Earned value project management.
Project Management Institute.
Fuller, M. A., Valacich, J. S., George, J. F., & Schneider, C. (2017). Information Systems Project
Management: A Process and Team Approach, Edition 1.1. Prospect Press.
Harrison, F., & Lock, D. (2017). Advanced project management: a structured approach.
Routledge.
Hornstein, H. A. (2015). The integration of project management and organizational change
management is now a necessity. International Journal of Project Management, 33(2),
291-298.
Ingason, H. T. (2015). Best project management practices in the implementation of an ISO 9001
quality management system. Procedia-Social and Behavioral Sciences, 194, 192-200.
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Lock, D. (2017). The essentials of project management. Routledge.

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Mir, F. A., & Pinnington, A. H. (2014). Exploring the value of project management: linking
project management performance and project success. International journal of project
management, 32(2), 202-217.
Schwalbe, K. (2015). Information technology project management. Cengage Learning.
Smith, P. (2014). BIM & the 5D project cost manager. Procedia-Social and Behavioral
Sciences, 119, 475-484.