Project Management: Bungalow Project

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