MGT5PMT: Project Budget Estimation for Royale Pizza Shop Renovation

This project presents a detailed budget estimation for the renovation of a Royale Pizza shop. It utilizes a Work Breakdown Structure (WBS) to categorize tasks across design, procurement, construction, and installation phases. The budget includes direct and indirect costs, estimated using a bottom-up approach. Resources such as designers, contractors, and managers are identified for each task. The document outlines key milestones, including the completion of design, procurement, construction, and painting/installation phases. The estimation includes costs for materials, labor, and equipment, with considerations for potential resourcing stress points. The project covers detailed cost breakdowns for each phase, including the identification of business needs, blueprint design, material purchase, and equipment installation, providing a comprehensive overview of the renovation project's financial aspects.

Budget Estimation
WBS Resource Direct
Costs
Indirect
Costs
Total
Estimate
Method
Additiona
l
Informati
on
Royale Pizza shop
rennovation
$29,000.00 $11,000.00 $40,000.00 Bottom-up
estimation
N/A
Project design phase
$5,000.00 $5,000.00 Bottom-up
estimation
N/A
Identification of
business needs
Project management
consultant
$1,800.00 $1,800.00 Bottom-up
estimation
N/A
Proper design for
blueprint
Designer $3,200.00 $3,200.00 Bottom-up
estimation
N/A
Providing approval for Sponsor $0.00 $0.00 Bottom-up
estimation
N/A
1 | P a g e

the project
Milestone 1: Design
phase completion
$0.00 $0.00 Bottom-up
estimation
N/A
Procurement and
delivery phase
$18,000.00 $18,000.00 Bottom-up
estimation
N/A
Procurement need
identification
Contractor, Procurement
manager
$5,000.00 $5,000.00 Bottom-up
estimation
N/A
Project suppliers
identification
Procurement manager,
Additional cost[1]
$6,000.00 $6,000.00 Bottom-up
estimation
N/A
Understanding the
price of the materials
Sponsor $0.00 $0.00 Bottom-up
estimation
N/A
Material purchase
Procurement manager,
Equipment supply[1]
$5,000.00 $5,000.00 Bottom-up
estimation
N/A
Receipt and inspection
Construction manager,
Shop supervisor
$2,000.00 $2,000.00 Bottom-up
estimation
N/A
Milestone 2:
Completion of
$0.00 $0.00 Bottom-up N/A
2 | P a g e

procurement and deliver
phase
estimation
Construction phase
$7,000.00 $7,000.00 Bottom-up
estimation
N/A
Finishing the flooring
work
Construction manager,
Contractor, Project
manager
$3,000.00 $3,000.00 Bottom-up
estimation
N/A
Compressor capacity
increment
Installer, Construction
manager
$2,000.00 $2,000.00 Bottom-up
estimation
N/A
Proper cleaning
kitchen
Cleaner, Construction
manager
$1,000.00 $1,000.00 Bottom-up
estimation
N/A
Buying of various
equipment’s
Contractor, Project
manager
$1,000.00 $1,000.00 Bottom-up
estimation
N/A
Milestone
3:Completion of
construction phase
$0.00 $0.00 Bottom-up
estimation
N/A
Painting or installation $10,000.00 $10,000.00 Bottom-up N/A
3 | P a g e

estimation
Installation of air
condition
Technical analyst,
Installer
$4,000.00 $4,000.00 Bottom-up
estimation
N/A
Dust free painting
Installer $6,000.00 $6,000.00 Bottom-up
estimation
N/A
Milestone 4:
Completion of painting
and installation
$0.00 $0.00 Bottom-up
estimation
N/A
4 | P a g e