Australian College BSBPMG514: Manage Project Cost - Task 1 Solution

This document presents a comprehensive solution to Task 1 of the BSBPMG514 Manage Project Cost assignment, focusing on the analysis of project costing methods and tools. The assignment requires students to demonstrate their understanding of various components involved in project development and implementation. The solution includes detailed answers to questions about costing methods, such as expert judgment and parametric estimating, along with tools like bottom-up and three-point estimation. Furthermore, it explores different strategies for managing project costs, including budgeting and cost tracking, and identifies the most effective strategies for addressing budgetary problems. The document also emphasizes the importance of referencing sources and adhering to academic integrity standards. This solution provides valuable insights into the key concepts of project cost management and offers a practical guide for students tackling similar assessments.

Student
Assessment Guide:
BSBPMG514 Manage project cost

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Content
s
1. Assessment Information......................................................................................................4
A. Purpose of assessment........................................................................................................................4
B. Competencies being assessed.............................................................................................................4
C. What you are required to do...............................................................................................................5
D. Adjustment and Support.....................................................................................................................7
E. Assessment submission.......................................................................................................................7

F. Assessment results and feedback........................................................................................................8
G. Technical tools for completing this assessment..................................................................................9
2. Assessment Coversheet.....................................................................................................10
3. Assessment Requirements.................................................................................................11
A. Overview...........................................................................................................................................11
B. Task 1 – Questioning i. Instructions for students............................................................................12
4. Marking Guide...................................................................................................................28
A. Marking Guide for Tasks 1 & 2 & 3....................................................................................................28

1. Assessment Information
A. Purpose of assessment
This assessment will develop your skills and knowledge skills and knowledge required to identify,
analyse and refine project costs to produce a budget, and to use this budget as the principal mechanism
to control project cost.
The assessment is designed to help you gather evidence of your competence against the requirements
of the unit of competency, as outlined below. Your evidence may take a variety of forms and must be:
 Authentic – your own work
 Valid – related to the competency
 Sufficient – appropriate quantity and quality
 Current – recent proof of your skills and knowledge
B. Competencies being assessed
Elements
To achieve competency in this unit students must demonstrate their ability to:
1. Determine project cost
2. Monitor and control project cost
3. Complete cost-management processes
Performance Evidence
Evidence of the ability to:
 Work closely with others to determine resources against budgetary frameworks
 Prepare a budget and cost-management plan for a project
 Monitor costs across a project's life cycle including solving cost variations and analysing possible
alternatives
 Record expenditure, create accurate financial reports and review cost-management processes
Knowledge Evidence
To complete the unit requirements safely and effectively, you must:
 Explain appropriate budgeting processes, tools and techniques

 Describe methods and tools for costing and cost analysis
 Explain strategies for managing costs and their application in different situations
 Outline processes for reviewing costs against outcomes
 Summarise key organisational policies and procedures applicable to this role
For further information on the competencies of this unit, please refer to:
https://training.gov.au/Training/Details/BSBPMG514
C. What you are required to do
This assessment requires you to answer all questions within each Assessment Task and be assessed as
“Satisfactory” in each to gain competency in BSBPMG514 Manage Project Cost.
Task 1
For Task 1, you are required to analyse different models and tools utilised in managing a project’s cost.
You will also demonstrate understanding of the various components needed in developing and
implementing a project.
Task 2
For Task 2, you are a Project Manager with OzMarket Consulting. You have been employed to project
manage a new garden for a local park. You are required to write a financial report listing the costings of
the project and to revise financial projections due to changes that occur during the implementation
phase.
Task 3
Task 3 requires you to report on the financial outcomes of the project and to summarise the financial
issues that arose in order to take into account for future projects.
For further details, please refer to the “Assessment Requirements” section of this document.
Assessment resources
To enable you to complete this assessment, the following documents have been provided in the unit
course page on Moodle unit on Moodle: BSBPMG514 Manage Project Cost Learner Guide
 BSBPMG514 Manage Project Cost PowerPoint slides
 PMBOK 5th edition – refer to Chapter 7, “Project Cost Management” on pages 193 - 226

 BSBPMG514 Marking Guide
 Sample Project management plan
A note on plagiarism and referencing
Plagiarism is a form of theft where the work, ideas, inventions etc. of other people are presented as your
own.
When quoting or paraphrasing from a source such as the Internet, the source must be recognised. If you
are quoting a source, make sure to acknowledge this by including “quotation marks” around the
relevant words/sentences or ideas. Note the source at the point at which it is included within your
assessment, such as by using a citation. Then list the full details of the source in a ‘references’ section at
the end of your assessment.
All sources used for your assessment should be detailed in the ‘references’ section. It is advisable to
never copy another person’s work.
D. Adjustment and Support
i. Reasonable adjustment
ACBI supports individual differences in the learning environment and provides ‘reasonable adjustment’
in training and assessment activities to support every learner. If you have any special needs that make it
difficult for you to complete your learning or assessments, you should discuss this with your assessor.
ACBI will endeavour to provide you with reasonable alternatives to assist you to complete the required
tasks such as completing tests verbally or using an interpreter.
NOTE: If you have any special needs, you should discuss this with your assessor before starting your
assessment.
ii. Support
While ACBI may not be able to assist you with language training or specific Language, Literacy and
Numeracy (LLN) training, our assessors will work with you to ensure that you are supported throughout
your qualification. If you require individual tutoring this may attract an additional fee (please refer to the
ACBI Student Handbook available from https://www.acbi.edu.au). Support may be offered by your
assessor, or for more specialist support you may need to contact the RTO administration.
E. Assessment submission
Always submit assessments on time by the due date. You can find the due date in the unit course page
on Moodle.

i. Assessment Coversheet
Once you have completed all the tasks of the assessment, you must complete the Assessment Cover
Sheet, including signing the declaration.
ii. File naming conventions
When submitting assessments electronically follow the following standard for naming document files
and subject line. You must insert the following information:
 Unit of Competency code (ie. BSBPMG514)
 ‘A’ for word assessment then followed by the assessment number and a dash
 Your first name and initial of last name. Capitalise only the first letter of names. Then insert a
hashtag, followed by submission attempt.
Hence as an example of incorporating the four points above your file name or subject line should appear
this way: BSBPMG514 A1 – JessieA #1
iii. Submission via Moodle
Please refer to the “Instructions for Submitting Your Assessment” on the unit course page in Moodle.
NOTE: Please take care to follow all instructions listed. Assessments uploaded with a draft status on
Moodle may not be graded.
F. Assessment results and feedback
i. Assessment results
Once you have submitted this assessment online via Moodle, your assessor will grade it and provide you
with feedback. For each task of the assessment, you will receive a grade of ‘Satisfactory’ or ‘Not
Satisfactory’. You will also receive a grade for the entire assessment of ‘Competent’ or ‘Not Competent’.
Each task of the assessment must be ‘Satisfactory’ in order to receive a grade of ‘Competent’.
ii. Resubmission
If your assessment is graded ‘Not Competent’, you receive instructions via the feedback form on
components to be amended.
Your assessor is committed to providing you with detailed feedback on the outcomes of the assessment
and will provide guidance on areas for improvement. In most instances, you should need only complete
the sections of the assessment that were deemed ‘Not Satisfactory’. However, it is important to
remember that depending on the task, it may be necessary to repeat the whole task (for example
presentations or the delivery of a training session).

If resubmission is required, you will need to amend or update your assessment as a different version by
the required term cut-off date, as detailed on Moodle.
NOTE: For further information on late assessment, please refer to the ‘Assessment Policy’ available on
Moodle.
iii. What happens if you do not agree with the assessment result
If you do not think the assessment process is valid, or disagree with the decision once it is made, or
believe that you have been treated unfairly, you can appeal.
The first step is to discuss the matter with your trainer. If you still do not agree with the assessment, you
are able to request a re-assessment. It is possible to have your evidence assessed by a different trainer.
If you remain dissatisfied after the re-assessment, you should contact the Director of Studies. Full details
of the Appeals process are contained in your Student Handbook.
G. Technical tools for completing this assessment
To complete this assessment, you need access to:
 A computer with internet
 Word processing and other relevant programs to develop appropriate documentation and
reports as required

2. Assessment Coversheet
Unit of Competency: BSMPMG514 Manage project cost
Assessment Tasks:
☐ Task 1. Questioning
☐ Task 2. Project
☐ Task 3. Written Questions
Due Date: Date Submitted:
Declaration: I have read and understood the following information at the beginning of
this assessment guide (please tick):
☐ Assessment information
☐ Submitting assessments
☐ Plagiarism and referencing
I declare this assessment is my own work and where the work is of
others, I have fully referenced that material.
Name (please print):
Student signature:
Date:
3. Assessment Requirements

A. Task 1 – Questioning
i. Instructions for students
Task 1 of this assessment requires you to analyse different models and tools utilised in managing a
project’s cost and gain an understanding of the various components needed in developing and
implementing a project.
Answer the questions below using the space provided:
 Answer all parts of each question
 Use your own words and give examples wherever possible
 The quality of your answer is more important than how long it is
 Enter your answers in this document
You may use various sources of information to inform your answers, including your resources provided
by ACBI, books, and online sources. You must acknowledge and cite your sources.
ii. Task 1 Questions
1A. Describe two (2) methods and two (2) tools that can be used for costing a project and
conducting a cost analysis.
Answer in 40 to 80 words.
There are different types of methods and tools for costing and project such as:
 Expert judgement method- Under it, experts provide past years’ financial information
to project managers which is used for further cost analysis (Matsuo and Schmidt,
2019).
 Parametric estimating method- This method is used for estimating overall cost of
project. In this, statistical connection between historical data and variables is used to
predict the cost.
Tools:
 Bottom up estimation- In this tool cost is estimated from lower level in accordance of
task break under work break down structure.
 Three-point estimation- This tool of cost analysis is based on PERT (Program
evaluation and review technique). It focuses on three points that are most likely,

optimistic and pessimistic.
1B. Answer the following:
a) Describe two (2) different strategies that can be used to manage project costs.
b) Outline the most appropriate strategy for responding to budgetary problems before they
arise and after they arise.
Answer in 80 to 160 words.
(a)
 Budgeting- In this future time period’s cost is estimated by help of previous years’
financial information.
 Cost tracking- It is also an important strategy which is used in order to track cost of
different kinds of activities and operations separately.
(b) Most appropriate strategy.
From above mentioned two strategies, cost tracking seem an effective way to
overcome budgetary issues which they arise. It becomes possible because under this
technique cost of each variable is tracked and compared to actual cost. Due to this, it

becomes easier for project managers to manage their overall financial issues.
1C. Answer the following:
a) Explain why costs should be reviewed against the project outcomes
b) Outline one process that could be used to review costs against outcomes
Answer in 80 to 160 words.
(a)
This is essential for project managers to review cost with outcome of project. It is so because
by help of this comparison, this becomes easier for managers to assess efficiency of project.
As well as success of project is also determined by help of review of actual cost with actual
cost of operation at the end of project (Rowe, 2020).
(b)
One of the effective process in order to review cost against outcomes is variance analysis. It is
so because under this actual cost of overall project is compared to estimated cost after
finishing the project.

1D. Answer the following:
a) Outline why it is important for each member of the organisation to adhere to organisational
policies and procedures
b) Describe the purpose of policies and procedures as they relate to project management roles
Answer in 80 to 160 words.
(a)
The organizational policies and procedures are too crucial for each member of a company. It is
so because in accordance of policies and strategies employees develop themselves. As well as
a project’s goals are determined as per the organizational structure.
(b)
The main purpose of policies and procedure of an organization is that these are interrelated to
goal of a project (Pellerin and Perrier, 2019). It is so because in a project, different types of
roles and responsibilities are assigned to members in accordance of organizational structure
that can be matrix, functional etc.

B. Task 2 – Questioning
i. Instructions for students
Read the scenarios of OzMarket Consulting provided below, then answer the following questions.
Answer the questions below using the space provided:
 Answer all parts of each question
 Use your own words and give examples wherever possible
 The quality of your answer is more important than how long it is
 Enter your answers in this document
You may use various sources of information to inform your answers, including your resources provided
by ACBI, books, and online sources. You must acknowledge and cite your sources.
ii. Task 2 Scenario
Scenario:
OzMarket Consulting has been employed to project manage the design and development of a
garden for the local park.
You have been engaged as the Project Accounts Manager to oversee all project costs. Total costs
MUST not exceed $10,000.00.
The park is to be constructed on undeveloped land next to a river. Tests were conducted and
results report the soil quality is quite poor and is predominantly clay. The area to be developed is
ten (10) metres by ten (10) metres.
Undertake the following tasks to complete this assessment activity. Use the following figures
when appropriate.
Position Hourly Rate
Project Manager $60.00
Project Account Manager $50.00
Project Department Heads $50.00
Labourer $25.00
Plant operators $30.00 (wet hire)

Landscape designer $100.00
Plants Price per variety
Flowers $1.00
Shrubs $2.00
Trees $10.00
Material Price per tonne
Soil $30.00
Stone $20.00
Sand $20.00
Miscellaneous Price per linear metre
Turf $5.00
Drainage (AG Pipe) $2.00
Fencing $10.00
Watering Equipment $3.00
If you determine other material is required you are to provide a list of the items and their relative
costs (if used).
iii. Task 2 Questions
2A.
NOTE: This is a multipart question. Ensure you complete each part of the question.
i. Determine what resources may be required for the landscaping project and estimate the

costs of the resources.
ii. Create a Work Breakdown Structure (WBS) for the landscaping task.
iii. Once you have created the WBS, consult with others involved in the project, as role played by
other students in your student. Use the consultation to determine if you have missed any
tasks. This consultation can be done verbally or in a written format. After your consultation,
record notes of what was discussed.
iv. Identify any tolerances necessary.
v. Estimate the costs of the project based on the resources identified in the WBS. State all
figures used and show all working.
Answer below using the tables provided. Answer in 100-250 words.
i. Determine what resources may be required for the landscaping project and estimate the costs
of the resources
For landscape project of developing garden for local park different types of resources will
be needed that are as follows:
Type of resources Estimated cost (In $)
Labour charges 7000
Plants 500
Basic material 500
Other 1500
Total 9500

ii. Work Breakdown Structure (WBS) for the landscaping task
This is defined as a form of structure which breaks overall tasks of a project in sub activities
which makes work easier.
Activity Start date End date
Foundation:
Measurement of area 1/03/2020 2/03/2020
Cleaning of area 3/03/2020 05/03/2020
Preparing area for gardening 06/03/2020 08/03/2020
Construction:
Boundary construction (Fencing) 09/03/2020 15/03/2020
Footpath construction 16/03/2020 20/03/2020
Entrance and exit gate construction 21/03/2020 26/03/2020
Preparing proper water drainage system 27/03/2020 31/03/2020
Gardening:
Growing of plans and flowers 01/04/2020 03/04/2020
Growing grass on the area 04/04/2020 05/04/2020
Designing:
Water foundation preparation 06/04/2020 10/04/2020
Exercise equipment installation 11/04/2020 12/04/2020

iii. Notes from consultation with others
In accordance of prepared WBS, a discussion has been date whose outcome is as follows:
 Managing quality of project is essential.
 Designing of landscape garden must be attractive.
iv. Identified necessary tolerances
For above landscape project, the key tolerances are as follows:

 All activities need to be performed under given time period.
 Cost of project must under estimated cost of project.
v. Estimated costs of the project based on the resources identified in the WBS.
NOTE: Ensure you state all figures used and show all working.
Particulars Unit cost ($) Amount ($)
Raw material cost: 1090
Flowers 1 100
Shrubs 2 40
Trees 10 100
Soil 30 90
Stone 20 60
Sand 20 80
Gate 150 300
Pipes 100 200
Water foundation 120 120
Salary and wages of professionals: 8410
Project manager 2880
Account manager 2300
Designer 750
Plant operator 300
Labour cost of measuring and cleaning the
surface for garden
1500

Contractor charges 680
Total cost 9500
2B.
Using the figures, WBS and cost estimates you developed during the previous question
(Task 2, Question 2B), create a cost management plan which includes a project budget.
Ensure the cost management plan clarifies any details which may impact the ongoing
management of project finances. Your plan must be presented in an industry
appropriate format.
Use the template called “BSBPMG514 Cost management plan template” provided on
Moodle to create your plan.
Save your plan as “BSBPMG514 Cost management plan – Your Name”, replacing “Your
Name” with your first and last names.
Ensure you submit your plan as part of your assessment.
Cost management plan for 12 months-
Covered in excel sheet.
Introduction- The main objective of cost plan is to getting an idea about how much fund will

be needed in order to complete different kinds of activities and operations of above project.
Cost management approach- Each cost management plan is prepared in accordance of
various kinds of approaches. It depends on companies’ that which approach they are going to
use. In the aspect of above mentioned cost management approach, variances are computed in
order to gather information about activities which are underperforming.
Measuring project cost- In the context of above project’s cost, it can be estimated that there
will an expense of $10648 while the actual cost is of $9500. As well as variance is of $1148
that is a favourable variance.
Reporting format- The format which is used in above cost management plan is for 12 months
in which each month’s estimated cost is mentioned.
Cost variance response process- In relation to above cost management plan, overall total cost
variance is favourable. Though, there is an activity whose variance is negative and that is of
purchasing of tree. In this context company needs that they should purchase tress from a
supplier whose rates are lower and it can be done by comparative analysis of rates of different
suppliers.
Cost change control process- The variance of total cost of project is favourable. Thus,
company does not need to make any changes in their cost management plan.
Project budget- The total estimated material cost for project is of $1118 while actual cost is
of $1090 that is a positive aspect. Charges of contractor are of $900 but in actual contractor
was paid only $680.
2C.
NOTE: This question has multiple parts. Make sure you complete each part.
i. Create a financial management plan which will allow you to monitor actual against the
budgeted expenditure.
Use the template called “BSBPMG514 Budget Analyser Template” provided on Moodle to
create your plan.
Save your plan as “BSBPMG514 Financial management plan – Your Name”, replacing “Your
Name” with your first and last names. Ensure you submit your plan as part of your
assessment.
ii. Create an implementation plan for monitoring of expenditure. Ensure you include how
these plans will be communicated with the stakeholders.
Save your plan as “BSBPMG514 Implementation plan – Your Name”, replacing “Your Name”

with your first and last names. Ensure you submit your plan as part of your assessment.
iii. The project has been running for three (3) weeks and during a recent monitoring activity
you realised that there is a discrepancy between the estimated costs and the actual costs
due to an increase in the number of hours it is taking to complete each task. In the table
below, create an outline of three or more options for controlling the costs.
(i) Financial management plan:
Particulars Budgeted cost ($) Actual cost ($)
Raw material cost:
Flowers 120 100
Shrubs 60 40
Trees 38 100
Soil 100 90
Stone 80 60
Sand 90 80
Gate 300 300
Pipes 210 200
Water foundation 120 120
Salary and wages of
professionals:
Project manager 3000 2880
Account manager 2500 2300
Designer 1000 750
Plant operator 330 300
Labour cost of measuring
and cleaning the surface for
garden
1800 1500
Contractor charges 900 680
(ii) Implementation plan for monitoring of expenditure.

In order to control different kinds of expenses, companies should apply an effective
monitoring plan. The variance analysis can be useful in order to monitor the
expenses. Under this technique actual number of expenses are compared to
estimated expenses. By help of this variances are computed which can be adverse
and favorable (Nachbagauer and Schirl-Boeck, 2019).
iii. Option for controlling costs
The cost can be controlled by eliminating those activities which are higher expensive and
their output is negative. As well as raw material needs to be purchased from those suppliers
who offer materials at lower cost.
2D.
THE SCENARIO:

The Project Manager has read your report on controlling the costs and would like further
information on budgeting processes. You are to explain budgeting processes, tools and techniques
and explain how these could be used to achieve financial objectives of the project and how they
could be used to monitor actions taken to control costs on a project that is currently running over
budget. Decisions will need to be made on how to control the costs.
Set up a meeting with:
 You, role playing being the Project Accounts Manager
 Your Trainer & Assessor, role playing being the Project Manager
NOTE: This meeting will be observed by your Trainer & Assessor. During this meeting, your Trainer
& Assessor will complete the observation checklist found in the “BSBPMG514 Marking Guide”.
WHAT YOU NEED TO DO BEFORE YOUR MEETING:
Prepare for your meeting by determining the most appropriate tools, techniques and processes for
budgeting on a small project such as this landscaping project.
WHAT YOU NEED TO DO DURING YOUR MEETING:
You are to explain budgeting processes, tools and techniques. This includes how these could be
used to achieve financial objectives of the project and how they could be used to monitor actions
taken to control costs on a project that is currently running over budget. Decisions will need to be
made on how to control the costs.
WHAT YOU NEED TO DO AFTER YOUR MEETING:
Record note of what was discussed during your meeting, including any feedback received.
Answer in 40-80 words.

Meeting notes
Meeting- The meeting was organized about making discussion on budgeting tools and
techniques so that cost can be controlled.
Notes after meeting: The overall conclusion of meeting was to assure that there should be
implementation of effective budgeting approach which can be flexible or fixed budgeting
method. The reason for applying these methods is that by help of it project managers can
focus on each individual activity in an effective manner.
2E. Read the scenario below, then answer the following question.
Scenario:
You recently met with the Project Manager. This resulted in the decision to halve the number
of shrubs being planted, to cut back by 50% the number of watering points and reduce the
hours of the staff by 25%.
Undertake a cost-analysis to identify if these variations will help bring the budget back into
alignment.
Then consider the cost analysis you undertook and answer the points below:
 Explain why you used the method and tools you selected
 Outline if the cost analysis identifies any alternative viable actions
 Describe why should costs be monitored across the project lifecycle
Answer in 80 to 160 words.

 Reason for applying above mentioned method was to reduce overall cost of different
kinds of activities and operations. By doing so cost will be lower than estimation.
 The cost should be monitored during entire lifecycle of project because it is a key
aspect. Any ignorance in this may lead to failure of project. Therefore, each activity’s
cost need to be identified during five phases of project life cycle.
2F. Using the data from Task 2, create a monthly financial report for the project. Ensure all
variations are incorporated.
Answer in 80 to 160 words.
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0
1
0 5 2 3
1
0
1
0
Tre
es 3
8
1
0
0
-
6
2 8 2 8 5 7 8
Soil
1
0
0
9
0
1
0 5 5 2 8 5 5
1
0
1
0
1
0
1
0
1
0
1
0
Sto
ne
8
0
6
0
2
0 2 8 5 5 5 5
1
0 5 5
1
0
San
d
9
0
8
0
1
0
1
0
1
0 5
1
0 5
1
0
2
0 5 5
Gat
e
3
0
0
3
0
0 0
1
5
0
1
0
0
5
0
Pip
es
2
1
0
2
0
0
1
0 0 0 0 0 0 0 0 0 0 0
1
5
0
5
0
Wat
er
fou
nda
tion
1
2
0
1
2
0 0
1
0
0
2
0
Sal
ary
and
wa
ges
of
pro
fess
ion
als: 0
Proj
ect
3
0
2
8
1
2
0 0 0 4
8
0 0 0 4
8
0 0 0 4
8
0 0 0 4
8
0 0 0 4
8
0 0 0 4
8

ma
nag
er
0
0
8
0 0 0 0 0 0 0 0
Acc
oun
t
ma
nag
er
2
5
0
0
2
3
0
0
2
0
0 0 0 0
3
8
4
3
8
4
3
8
4
3
8
4
3
8
4
3
8
4
Des
ign
er
1
0
0
0
7
5
0
2
5
0 0 0 0
1
2
5
1
2
5
1
2
5
1
2
5
1
2
5
1
2
5
Pla
nt
ope
rato
r
3
3
0
3
0
0
3
0
5
0
5
0
5
0
5
0
5
0
5
0
Lab
or
cost
of
mea
suri
ng
and
clea
nin
g
the
surf
ace
for
gar
den
1
8
0
0
1
5
0
0
3
0
0
2
5
0
2
5
0
2
5
0
2
5
0
2
5
0
2
5
0
Con
trac
tor
cha
rges
9
0
0
6
8
0
2
2
0
1
1
3
1
1
3
1
1
3
1
1
3
1
1
3
1
1
3

C. Task 3 – Written Questions
i. Instructions for students
Read the scenarios of OzMarket Consulting provided below, then answer the following questions.
Answer the questions below using the space provided:
 Answer all parts of each question
 Use your own words and give examples wherever possible
 The quality of your answer is more important than how long it is
 Enter your answers in this document
You may use various sources of information to inform your answers, including your resources provided
by ACBI, books, and online sources. You must acknowledge and cite your sources.
ii. Task 3 Scenario
Scenario:
The landscaping project has been successfully completed. The client is satisfied. The Project
Manager is happy. Everyone is starting to consider the next project.
Before you can start your next project, you need to finalise the landscaping project.
iii. Task 3 Questions

3A. Create a checklist of all the activities done to signify financial completion of the project.
Answer in 40 to 80 words.
There are less number of activities which are significantly completed. This is so because
majority of activities’ cost is higher than expected cost. There is some cost of material whose
cost is lower than estimation such as purchasing of shrubs, trees etc.
3B. Using the Financial Management Plan you created as part of Task 2, Question 2C, complete a
final costing of the project for forwarding to OzMarket Consulting.
Ensure the actual cost for the project has been captured this updated plan.
Save your plan as “BSBPMG514 Final Costing – Your Name”, replacing “Your Name” with your first
and last names. Ensure you submit your plan as part of your assessment.
3 B
Actual cost of landscape project:
Particulars Actual cost (In $)
Raw material cost:
Flowers 100
Shrubs 40
Trees 100
Soil 90

Stone 60
Sand 80
Gate 300
Pipes 200
Water foundation 120
Salary and wages of
professionals:
Project manager 2880
Account manager 2300
Designer 750
Plant operator 300
Labor cost of measuring and
cleaning the surface for
garden
1500
Contractor charges 680
3C. Develop a project outcome review which answers the following questions:
a) Was the project cost effective?
b) Did the processes used to manage the costs on the project prove to be efficient?
c) How could you improve the processes used to ensure a better outcome on the next project?
d) What are two or more improvements you can recommend?
Document your project outcome review below.

Answer in 80 to 160 words.
(a) No, project was not cost effective because majority of activities were producing
negative variance. Only some activities’ cost was lower than estimation.
(b) The processes used for cost management did not help in successful management of
cost. This is so because cost of various operations was not under budgeted cost.
(c) For next project, the project manager should use some other cost management
strategies which can be helpful. They can use activity based costing approach which
may control overall cost of different operations.
(d) Two recommendations:
 Hiring employees on contract base so that cost of labor can be controlled.
 Purchasing of materials from lower costly supplier.
REFERENCES
Books and journal:
Matsuo, T. and Schmidt, T.S., 2019. Managing tradeoffs in green industrial policies: The role of
renewable energy policy design. World Development, 122, pp.11-26.
Rowe, S.F., 2020. Project management for small projects. Berrett-Koehler Publishers.
Pellerin, R. and Perrier, N., 2019. A review of methods, techniques and tools for project planning
and control. International Journal of Production Research, 57(7), pp.2160-2178.
Nachbagauer, A.G. and Schirl-Boeck, I., 2019. Managing the unexpected in megaprojects: riding
the waves of resilience. International Journal of Managing Projects in Business.