Project Management: Bungalow Project

This document provides cost planning and budgeting for the construction of a bungalow project. It includes the estimation of human resource costs and material costs.

Running Head: PROJECT MANAGEMENT
Project Management: Bungalow Project
Name of the Student
Name of the University

1PROJECT MANAGEMENT
Part B
Cost Planning and Budgeting
For this project, a bungalow will be constructed and for this specific purpose, suitable
cost estimation is performed to determine the overall budget for the project. Now, in order to
determine the budget, it is required to consider two types of costs:
i. Human Resource Costs – This type of cost corresponds to the wages and salaries
of the staff and workers that are deployed in the project. The employees involved
in the project generally have standard wage structure that does not deviate in the
projects. On the other hand, for the external workers and personnel, the cost need
to be determined and fixed during hiring. The general convention for the same in
large scale projects is hiring contractor and workers through tender so as to ensure
the lowest cost bidder is selected to minimize the costs.
ii. Material Costs – This type of cost corresponds to the costs of materials,
equipments and other resources that are being utilized in the project. Generally,
these resources have fixed costs and the overall cost changes based on the number
or units of the materials utilized in the project. However, the material costs may
change if there is a significant change in the market.
In this project, the human resource costs are determined using bottom up estimation
technique as shown in the following table.
WBS Task Name Duration Predecessors Resource Names Cost
0 Construction of Bungalow 60 wks $251,460.00
1 Preliminary 51 wks $193,950.00

2PROJECT MANAGEMENT
1.1 Design Structure 2 wks Tradesman $3,600.00
1.2 Appoint Project Manager 48 wks 2 Tradesman[50%] $43,200.00
1.3 Modify Changes 1 wk 2 Tradesman[25%] $450.00
1.4 Conduct Soil Test 2 wks 2 $0.00
1.5 Receive Client Design Approval 1 wk 3 Tradesman[50%] $900.00
1.6 Draw Plans and Schedules 2 wks 4 Tradesman $3,600.00
1.7 Attain Engineer Certification 2 wks 5 $0.00
1.8 Submit Plans to Local Council 6 wks 7 $0.00
1.9 Prepare and Submit Application
to QBCC 1 wk 8 Tradesman $1,800.00
1.10 Select Insurance Package 2 wks 14 Tradesman $3,600.00
1.11 Engage the Project Management
Team 38 wks 7 Tradesman[200%
] $136,800.00
2 Site 49 wks $4,200.00
2.1 Erect Temporary Fencing 1 wk 9 $0.00
2.2 Install Portaloo to Site 48 wks 14 $0.00
2.3 Install Temporary Power Pole 1 wk 9 $0.00
2.4 Install Water Point 1 wk 14 $0.00
2.5 Power and Water Construction
Costs 1 wk 14 Labourers[50%],
Tradesman[50%] $1,500.00
2.6 Clear Ground 1 wk 9 Tradesman[20%] $360.00
2.7 Set Out the Dwelling 1 wk 16 Labourers[50%],
Tradesman[50%] $1,500.00
2.8 Dig Foundations 3 wks 17 $0.00
2.9 Foundation Inspection 1 wk 18 Labourers[20%] $240.00
2.10 Install Trench Mesh 1 wk 19 Labourers[20%],
Tradesman[20%] $600.00
2.11 Pour Footings 1 wk 20 $0.00
3 Building (To Lock Up) 13.5 wks $33,630.00
3.1 Erect Double Brick External
Wall System 3 wks 21 Labourers,
Tradesman $9,000.00
3.2 Door and Window Frames 1 wk 26 Labourers[50%],
Tradesman[50%] $1,500.00
3.3 Glazing 1 wk 27 $0.00
3.4 Install Floor Joists 1 wk 26 Tradesman[50%] $900.00
3.5 Erect internal timber frame,
floors and walls 3 wks 29 Labourers[50%],
Tradesman[50%] $4,500.00
3.6 Install roof trusses and battens 3 wks 30 Tradesman[80%] $4,320.00
3.7 Install Roof Rail 2.5 wks 31 Labourers[20%],
Tradesman[20%] $1,500.00
3.8 Ceiling Joists 1 wk 31 Labourers[50%],
Tradesman[50%] $1,500.00
3.9 Fit T & G Strip Flooring 1 wk 32 Labourers[75%],
Tradesman[75%] $2,250.00
3.10 Install Guttering 1 wk 31 Tradesman[20%] $360.00

3PROJECT MANAGEMENT
3.11 Fit Roof Tiles 2 wks 33 Labourers,
Tradesman $6,000.00
3.12 Rough in Electrical 1 wk 33 Tradesman[50%] $900.00
3.13 Rough in Plumbing 1 wk 33 Tradesman[50%] $900.00
4 Building (Handover) 10 wks $19,680.00
4.1 Install Insulation 1 wk 37 Labourers[50%] $600.00
4.2 Plaster Ceiling 1 wk 37 $0.00
4.3 Plaster Walls 1 wk 37 $0.00
4.4 Crane Lift Shell into Place 0.2 wks 40 $0.00
4.5 Install and Connect Swimming
Pool Shell / Pump 3 wks 42 $0.00
4.6 Conduct Second Fix 2 wks 42 Labourers,
Tradesman $6,000.00
4.7 Tiles 4 wks 44 Tradesman $7,200.00
4.8 Paint Walls and Ceilings 2 wks 45 $0.00
4.9 Fit Off Electrical Points and
Appliances 2 wks 46 $0.00
4.10 Fit Off Plumbing Points 2 wks 45 $0.00
4.11 Install Downpipes and Connect
to Storm Water 2 wks 34 Tradesman[10%] $360.00
4.12 Landscape the Site 3 wks 40 Labourers[50%],
Tradesman[50%] $4,500.00
4.13 Connection to Sewer 1 wk 40 Tradesman[10%] $180.00
4.14 Connection to Water Supply 1 wk 40 Tradesman[10%] $180.00
4.15 Connection to Power Supply 1 wk 47 Tradesman[20%] $360.00
4.16 Clean Site 1 wk 50 Labourers[25%] $300.00
4.17 Client Handover 1 wk 51 $0.00
4.18 Mortgage Holder Inspection 1 wk 52 $0.00
On the other hand, for estimation of the material costs required in the project, top down
estimation technique is utilized (Harrison & Lock, 2017). The cost estimation for the materials
required for the project is shown in the following table.
Acti
vity
#
Un
its
Unit Plant Materia
l/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
- -
$
64,800.0
0
$
51,840.00
$
97,200.00
$
64,800.00
$
71,280.0
0
1.3 0.2
5
$
2,250.
00
- - $
562.50
$
450.00
$
843.75
$
562.50
$
618.75

4PROJECT MANAGEMENT
1.4 1
$
450.0
0
- $
450.00 $
900.00
$
720.00
$
1,350.00
$
900.00
$
990.00
1.5 0.2
5
$
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 $
-
$
650.0
0
- $
650.00
$
520.00
$
975.00
$
650.00
$
715.00
1.8 6
$
700.0
0
- $
700.00 $
4,900.00
$
3,920.00
$
7,350.00
$
4,900.00
$
5,390.00
1.9 2
$
400.0
0
$
400.0
0
$
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
- -
$
58,444.0
0
$
46,755.20
$
87,666.00
$
58,444.00
$
64,288.4
0
2 $
-
$
-
$
-
$
-
$
-
2.1 48 $
16.00
$
768.0
0
- $
1,536.00
$
1,228.80
$
2,304.00
$
1,536.00
$
1,689.60
2.2 48 $
11.00
$
528.0
0
- $
1,056.00
$
844.80
$
1,584.00
$
1,056.00
$
1,161.60
2.3 48 $
8.50
$
408.0
0
- $
816.00
$
652.80
$
1,224.00
$
816.00
$
897.60
2.4 1
$
350.0
0
$
350.0
0
- $
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
$
11,700.0
0
$
9,360.00
$
17,550.00
$
11,700.00
$
12,870.0
0

5PROJECT MANAGEMENT
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
$
120.0
0
$
300.0
0
- $
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 0.7
5
$
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
$
800.0
0
$
800.0
0
- $
1,600.00
$
1,280.00
$
2,400.00
$
1,600.00
$
1,760.00
4.5 1
$
11,20
0.00
$
11,20
0.00
-
$
22,400.0
0
$
17,920.00
$
33,600.00
$
22,400.00
$
24,640.0
0
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
-
$
15,000.0
0
$
12,000.00
$
22,500.00
$
15,000.00
$
16,500.0
0
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.
- $
4,200.00
$
3,360.00
$
6,300.00
$
4,200.00
$
4,620.00

6PROJECT MANAGEMENT
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
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 0.2
5
$
1,500.
00
- - $
375.00
$
300.00
$
562.50
$
375.00
$
412.50
4.17 1 $
- - - $
-
$
-
$
-
$
-
$
-
4.18 1 $
- - - $
-
$
-
$
-
$
-
TOT
AL
$2,76,51
4.38
$
2,21,211.50
$
4,14,771.56
$
2,76,514.38
$3,04,16
5.81
Considering the total costs of human resources and the most likely outcomes for the
material resources, the total projected budget is $555,625.
Quality Management Planning
Quality management plan is required to ensure the right quality standard is fulfilled for
the project. Before developing a quality management plan, it is first required to develop the
quality standards that need to be met during the project. Once the standards are developed, it is
required to ensure these standards are met and fulfilled during the project. Similarly, for this
project, the quality should focus on the bungalow i.e. the bungalow to be constructed should
meet certain construction and usage quality standards (Kerzner & Kerzner, 2017). This will
require proper standard of materials used and suitable quality of work. Accordingly, a quality
assurance manager can be deployed who will supervise the progress of the project and ensure the

7PROJECT MANAGEMENT
project meets the quality standards of the project. Furthermore, he needs to report the progress to
the project manager who can supervise whether the project meets the quality standards in terms
of quality of materials and the construction itself.

8PROJECT MANAGEMENT
References
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.
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Lock, D. (2018). The essentials of project management. Routledge.
Schwalbe, K. (2015). Information technology project management. Cengage Learning.
Tonchia, S. (2018). Project Cost Management and Finance. In Industrial Project
Management (pp. 153-170). Springer, Berlin, Heidelberg.