Project Planning and Budgeting: The Bunglow Project

This document discusses project planning and budgeting for the Bunglow project. It covers the processes, tools, and techniques of cost management and quality management. It also explores the importance of quality monitoring and the impact of project cost on quality. The document provides insights into cost estimation techniques and justifies the budgetary plan.

Running head: PROJECT PLANNING AND BUDGETING
Project Planning and Budgeting: The Bunglow Project
Name of the Student:
Name of the University:

1PROJECT PLANNING AND BUDGETING
Table of Contents
Part A...................................................................................................................................2
Initial discussion..............................................................................................................2
Respond to a fellow discussion........................................................................................3
Part B: Cost and Quality Management plan........................................................................4
1. Project cost management plan.........................................................................................4
1.1 Processes of cost management...................................................................................4
1.2 Tools and techniques of cost management................................................................5
1.3 Justification for the taken budgetary plan..................................................................5
2. Quality management plan for the Bunglow project.........................................................7
2.1 Quality management processes..................................................................................7
2.2 Quality management tools and techniques................................................................8
2.3 Quality assurance plan...............................................................................................8
2.4 Importance of quality monitoring for the project......................................................9
References..........................................................................................................................10

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Part A
Initial discussion
Project quality can be defined as one of the most essential professional project knowledge
areas that help the project owners to deliver a satisfactory project outcome to the clients. Quality
is the very last consideration for project owners. Regardless of size and type, the project owner is
needed to prepare a best quality management plan. The project manager is always responsible to
define and codify standards for developing a quality management plan. Quality of any project
must be measured much frequently (weekly, daily and monthly) based on the importance.
For managing quality of a project different tools and techniques are available.
Considering various aspects the most suitable quality management tools and techniques such as
cause and effect diagram, scatter diagram, histogram, control chart, statistical sampling, control
charts, flow chart and Pareto chart with Pareto analysis are needed to be selected and applied by
the project manager while implementing the project. The quality of any project can be assured
through quality assurance program. Based on the SMART benchmark the project quality
management plan should be prepared by the project managers. Quality project can control the
project cost and avoid challenges of overrunning time and over allocation of resources.
According to Ahern, Leavy and Byrne (2014), project cost can also impact the quality of a
project.
For instance, Corwin Corporation a much known rubber based product manufacturing
company took a project of PETER Company with a fixed price of $250,000. However due to
lack of quality management plan the project failed to meet the owner’s expectation.

3PROJECT PLANNING AND BUDGETING
Respond to a fellow discussion
I feel that, the post is compact, brief and nicely presented but could have been better than
this if the importances of the identified knowledge factors (cost and quality) are discussed little
deeply with real life examples. I think that the role of quality management and cost management
in project success plays active role. However, the relationship between the quality management
plan and cost management plan are not properly elaborated. Apart from that, it is also not
mentioned that how quality project helps a project manager or entire organization to gain
measureable global competitive advantages and commercial revenue as well. However, in order
to gain exponential commercial growth only quality management plan is not enough rather both
the knowledge areas are equally important.
I also feel that, individually the benefits of quality management plan and cost
management plan should have been discussed considering an example of cost baseline setting. I
have realized that, nothing has been mentioned regarding the quality assurance and quality
monitoring needs. These could have been discussed but these are missing. I would like to add on
the importance of Total Quality Management activities also. I feel that quality monitoring plan
must be used by any project manager frequently to avoid any sort of project development and
implementation risks. These details are also not demonstrated in the discussions. Overall the
discussion is good but more specifications would have helped the readers to understand more
about the crucial importance of cost and quality management planning.

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Part B: Cost and Quality Management plan
1. Project cost management plan
1.1 Processes of cost management
Various ways are there use for managing project cost. The different processes applicable
for the project are mentioned in the below section:
Bottom up estimation: In order to estimate cost for any project button up is the most
suitable way. This process is costly and time consuming at the same time but it helps to produce
reliable resultants.
Parametric cost estimation technique: In cases where enough historical data are
available this particular cost estimation technique is used. The different variables used in varied
projects are used to calculate this estimation.
Three point cost estimation: The three various measurements that are followed for this
estimation include likely cost, optimistic cost and the pessimistic costs.
Analogous cost estimation: This technique is referred to as one of the most widely used
cost estimation techniques. This approach is less costly and produces result very soon.
Among three of the cost estimation technique the Bunglow project owner should select
bottom up cost estimation technique. This technique will help the project manager and project
team members to know details of the cost applications. If the owner of the Bunglow project
considers this cost estimation technique then it will help to produce accurate and perfect values.

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1.2 Tools and techniques of cost management
In order to manage any project proper tools and techniques are needed to be used by the
project manager to accomplish the project within assigned timeline and budget. On the other
hand, if proper technique or tools are not used then the project will fail to meet the expected
goals, objectives and aims. The different tools and techniques that can be used for this project
include accurate development and design of project duration, horizontal planning, and
appropriate vendor bidding analysis, proper allocation of resources with both proper materials ad
constriction equipments.
1.3 Justification for the taken budgetary plan
A baseline cost has been selected for the project a modified schedule is presented in the
below table:
Task Name Duration Cost Actual Cost
Schedule of Bunglow development project 420 days $812,673.6
0 $725,455.49
Project preliminary phase 357 days $201,584.0
0 $158,493.89
Design structure 14 days $50,000.00 $50,000.00
Appointing project manager 336 days $80,640.00 $53,760.00
Modify changes 7 days $1,344.00 $1,344.00
Conducting soil testing 14 days $896.00 $0.00
Receiving approval from the clients 7 days $1,456.00 $0.00
Drawing plan and schedule 14 days $2,912.00 $2,912.00
Attain engineer certifications 14 days $896.00 $0.00
Submitting plans to the local council 42 days $10,080.00 $10,080.00
Preparing and submitting QBCC applications 7 days $1,120.00 $0.00
Selection of insurance packages 14 days $2,240.00 $2,240.00
Engage the project management team 266 days $50,000.00 $38,157.89
Site 343 days $183,776.0
0 $145,920.00
Erecting temporary fencing 7 days $50,000.00 $50,000.00
Installation of portaloo to the site 336 days $69,888.00 $32,032.00

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Installation of temporary power pole 7 days $1,120.00 $1,120.00
Installation of water point 7 days $1,120.00 $1,120.00
Cost estimation for power and water construction 7 days $1,232.00 $1,232.00
Clear ground 7 days $1,344.00 $1,344.00
Set out of the dwelling 7 days $1,344.00 $1,344.00
Dig foundations 21 days $4,704.00 $4,704.00
Foundation of inspection 7 days $50,000.00 $50,000.00
Installation of trench mesh 7 days $1,344.00 $1,344.00
Pour footing 7 days $1,680.00 $1,680.00
Project building (to lock up) phase 94.5 days $172,840.0
0 $172,840.00
Erect the double brick external wall system 21 days $21,344.00 $21,344.00
Framing doors and windows 7 days $20,000.00 $20,000.00
Glazing 7 days $448.00 $448.00
Installation of floor joists 7 days $20,448.00 $20,448.00
Erect internal timber frame, floors and walls 21 days $21,344.00 $21,344.00
Install roof trusses and battens 21 days $20,000.00 $20,000.00
Installation roof rail 17.5 days $1,120.00 $1,120.00
Ceiling joists 7 days $20,448.00 $20,448.00
Fit T and G strip flooring 7 days $448.00 $448.00
Installation of guttering 7 days $20,448.00 $20,448.00
Fit roof tiles 14 days $896.00 $896.00
Rough in electrical 7 days $15,448.00 $15,448.00
Rough in plumbing 7 days $10,448.00 $10,448.00
Project building (handover) phase 70 days $254,473.6
0 $248,201.60
Insulation installing 7 days $1,680.00 $1,680.00
Plaster ceiling 7 days $1,680.00 $1,680.00
Plaster walls 7 days $1,120.00 $1,120.00
Crane lift shell into place 1.4 days $89.60 $89.60
Install and connect swimming pool shell or pump 21 days $53,360.00 $53,360.00
Conducting second fix (architraves and fitting activities) 14 days $2,240.00 $2,240.00
Tiles 28 days $6,720.00 $3,360.00
Wall paining and ceiling 14 days $2,240.00 $2,240.00
Fit off electrical points and appliances 14 days $2,912.00 $0.00
Fit off plumbing points 14 days $3,360.00 $3,360.00
Install downpipes and connect to storm water 14 days $2,240.00 $2,240.00
Landscape the site 21 days $4,032.00 $4,032.00
Connecting to sewer connecting to water supply 7 days $1,680.00 $1,680.00
Connection to the water supply 7 days $1,120.00 $1,120.00
Connection to the power supply 7 days $50,000.00 $50,000.00

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Clean site 7 days $50,000.00 $50,000.00
Handover to client 7 days $50,000.00 $50,000.00
Mortgage holder inspections 7 days $20,000.00 $20,000.00
The above project defines the actual cost and the planned cost and after setting he project
cost baseline it is measured that there is a variance between the cost measured. If all the factors
and specifications are accurately followed by the project manager and project team members
then the project will be successfully completed within assigned timeline and budget even little
before than th assigned timeline.
2. Quality management plan for the Bunglow project
2.1 Quality management processes
Quality management process is comprises of different procedures in terms of quality
assurance, quality control, quality improvement and quality monitoring. Each individual phase
are required to be followed by the project managers before implementing the project in real field
of application. Particularly for the Bunglow project cost quality management is very essential as
it is a high cost project. Poor quality will result over running cost and over allocation of budget.
Some potential risks and uncertainty are also being identified which can be resolved and
mitigated with the implementation of a proper quality management plan.
While implementing the Bunglow project the construction head and project manager
needs to follow some formal processes. Every process required to have unique objectives. Only
with proper verification and validation the quality processes should be implemented. The
processes should be followed for this Bunglow project are as follows:

8PROJECT PLANNING AND BUDGETING
Set quality standards: During the construction period some accurate specification
should be identified to develop the distribution and clarification. It will help to specify the unique
project requirements.
Set of educational training: In this phase, the project manager should arrange
professional training programs and each assigned team members are allowed to attend the
training session.
Measuring construction QM: The person who is in charge must take all the
responsibilities to check for quality material, equipments, testing and constructing as well.
2.2 Quality management tools and techniques
The different tools and techniques those are to be used for implementing the Bunglow
project are as follows:
 Scatter diagram
 Flow chart
 Histogram
 Cause and effect diagram
 Pareto chart and Pareto analysis
 Inspection
 Statistical sampling
 Control chart

9PROJECT PLANNING AND BUDGETING
2.3 Quality assurance plan
During the project progress phase it is mandatory for the project manager and project
team members to assure that the expected quality is maintaining followed by all specifications.
For assuring the quality of the project the steps needs to be followed re as follows:
 Proper identification of project goal, objectives and associated Critical Success
Factors (CSF)
 Identifying both the external and internal consumers
 Considering feedback from the clients and internal consumers
 Measuring the final result
2.4 Importance of quality monitoring for the project
For avoiding all potential risks, continuous improvement plan should be applied. The
Bunglow project is comprises of four different phases in terms of primary, site design and
development, building (to lock up) and building (handover). After completion of each of the
phases a quality monitoring technique should be applied to the project to check that whether it is
governing towards to expected success pathway or not. If it is not then respective change
management approaches should be incorporated to the project to improve its quality. The
frequency of atleast weekly monitoring needs to be used for the success of the Bunglow project.

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