Detailed Project Cost Analysis and Budget for Fred's Shed Construction

This project analyzes the cost of constructing a shed for Mr. Jones, adhering to a budget of approximately $40,000 and a tight three-week timeline. The project encompasses various stages, including requirement selection, design, site preparation, implementation, shed installation, and project handover. A detailed work breakdown structure (WBS) outlines tasks, predecessors, time estimates, and resource allocation. The project's critical path is identified using a Gantt chart, emphasizing the need for strategic planning and resource management. The budget covers all project specifications, with a small project team, necessitating careful resource allocation. The document includes a budget table and figures illustrating the WBS and Gantt chart, and concludes with a bibliography of relevant project management resources. The project aims to deliver a functional shed accommodating tractors, utility vehicles, and a workbench within the specified timeframe and budget.

Running head: PROJECT COST
Project Cost
Name of the Student
Name of the University
Author Note

1
PROJECT COST
Fred’s shed Construction
A budget has to be prepared for construction of a shed for presenting it to the project
steering committee. Mr. Jones wants Fred Smith to develop a shed with a cost of approximately,
$40,000. According to the specifications given by Mr. Jones, a project budget has been prepared
by considering the best quality materials for the project. The size of the shed to be prepared is
considerably large as it should accommodate to store tractors, utility, vehicles and should include
spaces for a workbench, tools and fertilizers. The project work should commence within six
weeks and therefore, estimated date of project initiation is taken as 20th February 2018. Me.
Jones has made it clear that he needs the whole work to be completed within 3 weeks and
therefore, the date of project completion is roughly estimated to be 20th March 2018.
The budget for the whole project work has been prepared considering the salary of all the
project team members and the construction workers. The site preparation is a crucial step of the
shed construction as it involves proper survey of the site and locating the boundaries of the site
properly. A proper project management methodology is to be followed for planning, designing
and completion of the project. The detailed budget and work breakdown structure of the project
is elaborated in the following table.
Fred’s Shed
Work Breakdown Structure
Task
Number/
ID
Task Description
Predecesso
r
relationshi
p
(sequence)
Time Resource Names Cost
0 Shed Construction 20.63 days $39,885.00
1 Project starts 0 days Contractor Fred $0.00
2 Requirement
selection and Planning 0.88 days $2,160.00

2
PROJECT COST
2.1 Inspection of the
site 1 2 hrs Contractor Fred $480.00
2.2
Meeting with Mr.
Jones for selection of
color and style of the
shade
3 1 hr Contractor Fred $240.00
2.3 Documenting the
requirements 4 2 hrs Contractor Fred $480.00
2.4 Estimating the
materials required 4 2 hrs Contractor Fred $480.00
2.5 First installment of
the payment receiving 6 2 hrs Contractor Fred $480.00
3 Shed Designing 2 days $2,440.00
3.1 Analyzing the
requirements 3 5 hrs Contractor Fred $1,200.00
3.2
Designing the shade
on basis of the place
available
9 10 hrs Designer Karen $1,000.00
3.3 sharing the design
with Mr. Jones 10 1 hr Contractor Fred $240.00
3.4 design Approval by
Mr. Jones 11 0 hrs
Contractor
Fred ,Designer
Karen
$0.00
4 Site Preparation 7.25 days $7,710.00
4.1 Underground
Cable Service Check 12 10 hrs Construction
Workers $250.00
4.2 locating existing
boundaries 12 4 hrs Surveyor $200.00
4.3 site clearance 15 20 hrs Construction
Workers $500.00
4.4 Establishment of
temporary site facilities 16 24 hrs Contractor Fred $5,760.00
4.5 Building the
framework 17 10 hrs Designer Karen $1,000.00
5 Implementation 6.38 days $17,340.00
5.1 start of excavation
work in the site 18 0 hrs Construction
Workers $0.00
5.2 Booking of council
inspection 20 1 hr Council Inspector $100.00
5.3 booking the
concrete truck 20 1 hr Concrete truck [1] $5,000.00
5.4
setting dates for
shed installation and
power supply
20 1 hr Contractor Fred $240.00
5.5 receive of second
installment of payment 23 2 hrs Contractor Fred $480.00

3
PROJECT COST
5.6 Construction of the
Shed 24 48 hrs Contractor Fred $11,520.00
6 Shed Installation 7.38 days $3,515.00
6.1 shed delivery 25 1 hr Contractor Fred $240.00
6.2 connecting the main
powers 24 18 hrs Subcontractor
Eddie( electrician) $900.00
6.3 connecting the
water supply pipes 24 15 hrs Subcontractor
Bob(Plumber) $750.00
6.4 Installation of a
toilet in the shade 29 15 hrs
Construction
Workers,
Subcontractor
Bob(Plumber)
$1,125.00
6.5 Installation of
Windows 27 10 hrs Subcontractor
Gary( Glazier) $500.00
7 Site clearance and
project handover 3.38 days $6,720.00
7.1
Removal of rubbish
and temporary
amenities from the site
31 6 hrs
Contractor
Fred ,Team
members
$1,680.00
7.2 Project completion 33 0 days Contractor Fred $0.00
7.3 Drafting the final
bill 34 2 hrs Contractor Fred $480.00
7.4 documenting the
projects 35 2 hrs Contractor Fred $480.00
7.5 Resource release 36 5 hrs Contractor Fred $1,200.00
7.6 Payment
completion 37 10 hrs Contractor Fred $2,400.00
7.7 Keys handover 38 2 hrs Contractor Fred $480.00
7.8 Client sign off 39 0 hrs Contractor Fred $0.00
8 Project ends 40 0 hrs $0.00
Table 1: The budget prepared for the Project
(Source: Created by Author using MS Project)
The work breakdown structure of the project is illustrated below-

4
PROJECT COST
Shed Constuction
Project starts Requirement selection
and Planning
Inspection of the
site
Meeeting with Mr
Jones for selection of
color and style of the
shade
Documenting the
requirements
Estimating the
materials required
First installment of the
payment receival
Shed Designing
Analysing the
requirmenets
Designing the shade
on basis of the place
available
sharing the design
with Mr. Jones
design Approval by
Mr. Jones
Site Preparation
Underground Cable
Service Check
locating exsisting
boundaries
site clearance
Establishment of
temporary site
facilities
Building the
framework
Implementaion
start of excavation
work in the site
Booking of council
inspection
booking the
concrete truck
setting dates for shed
installation and power
supply
receival of second
istallement of
payment
Construction of the
Shed
Shed Installation
shed delivery
connecting the main
pow ers
connecting the
water supply pipes
Installation of a toilet
in the shade
Installation of
Windows
Site clearance and
project handover
Removal of rubbish
and temperory
amneties from the
site
Project completion
Drafting the final bill
documenting the
projects
Resource release
Payment completion
Keys handover
Client sign off
Project ends
Figure 1: The work breakdown structure of the Project
(Source: Generated by author using MS Schedule Pro)

5
PROJECT COST
Figure 2: Representing the Gantt chart of the project
(Source: Generated by author using MS Project)
The work activities marked in red in the Gantt chart above depict the critical path of the
project.

6
PROJECT COST
The project is complex as the time available for the project is very less. A strategic planning is
required for meeting all the requirements specified by Mr. Jones. A budget of $39,885 has been
prepared that covers all the specification set by the Mr. Jones. The budget table specifies the
tasks that are needed to be implemented for project development. The project team is small and
therefore proper resource allocation is necessary. The budget table indicates the different
resources allocated for the different tasks associated with the project.

7
PROJECT COST
Bibliography
Fewings, P., 2013. Construction project management: an integrated approach. Routledge.
Joslin, R. and Müller, R., 2015. Relationships between a project management methodology and
project success in different project governance contexts. International Journal of Project
Management, 33(6), pp.1377-1392.
Kerzner, H., 2013. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Larson, E.W. and Gray, C., 2013. Project Management: The Managerial Process with MS
Project. McGraw-Hill.
Meng, X., 2012. The effect of relationship management on project performance in
construction. International journal of project management, 30(2), pp.188-198.
Walker, A., 2015. Project management in construction. John Wiley & Sons.