MGT5PMT: Royale Pizza Shop Renovation Project Budget Analysis

This project focuses on the budget estimation for the renovation of Royale Pizza shop. It includes a Work Breakdown Structure (WBS) with detailed activities, resources, direct and indirect costs, and cost estimation methods. The project covers design, procurement, construction, and installation phases, with a total estimated cost of AU$40,000.00. The budget is based on a bottom-up estimation method. The project also includes a discussion of schedule planning, resource allocation, and the identification of potential resourcing stress points, tools and techniques used for project management. The project aims to provide a comprehensive budget and resource plan for the successful completion of the Royale Pizza shop renovation, considering the project's scope, deliverables, and constraints.

Budget Estimation
WBS ID Activity description Resources Direct Costs Indirect
costs
Cost Estimate Method Additional
information
0 Renovation of Royale
Pizza shop
AU$ 40,000.00 --- AU$ 40,000.00 Bottom up
estimation
N/A
1 Design stage AU$ 5,000.00 ---- AU$ 5,000.00 Bottom up
estimation
N/A
1.1 Conducting meeting
with the designer
Project management
consultant
AU$ 200.00 ---- AU$ 200.00 Bottom up
estimation
N/A
1.2 Undertaking sketch
studies
Designer, Project
management
consultant
AU$ 300.00 --- AU$ 300.00 Bottom up
estimation
N/A
1 | P a g e

1.3 Undertaking
preliminary design for
shop renovation
Designer AU$ 1,500.00 ---- AU$ 1,500.00 Bottom up
estimation
N/A
1.4 Creating detailed
design
Contractor, Designer AU$ 3,000.00 --- AU$ 3,000.00 Bottom up
estimation
N/A
2 Procurement and
delivery phase
AU$ 18,000.00 AU$ 18,000.00 Bottom up
estimation
N/A
2.1 Determining
suppliers and other
construction contractors
Procurement manager,
Project management
consultant, Project
manager
AU$ 200.00 AU$ 200.00 Bottom up
estimation
N/A
2.2 Recommending
vendors
Procurement manager,
Project management
consultant
AU$ 300.00 AU$ 300.00 Bottom up
estimation
N/A
2.3 Purchasing orders
and executing contracts
Equipment suppliers ----- AU$
7,000.00
AU$ 7,000.00 Bottom up
estimation
N/A
2 | P a g e

2.4 Purchasing of deep
fryers, boilers and
dough roller
Equipment suppliers AU$ 4,000.00 AU$ 4,000.00 Bottom up
estimation
N/A
2.5 Managing and
expediting delivery of
goods
Procurement manager,
Supervisor
---- AU$
6,500.00
AU$ 6,500.00 Bottom up
estimation
N/A
3 Construction phase AU$ 7,000.00 AU$ 7,000.00 Bottom up
estimation
N/A
3.1 Undertaking the
work of flooring
Construction manager,
Contractor
AU$ 2,000.00 ----- AU$ 2,000.00 Bottom up
estimation
N/A
3.2 Increasing the
capacity of compressor
Construction manager,
Supervisor
AU$ 1,000.00 ----- AU$ 1,000.00 Bottom up
estimation
N/A
3.3 Removing the rear
area of the shop
Construction manager,
Contractor
AU$ 2,000.00 ----- AU$ 2,000.00 Bottom up
estimation
N/A
3.4 Creating additional
dining spaces
Construction manager,
Supervisor
AU$ 1,500.00 ----- AU$ 1,500.00 Bottom up
estimation
N/A
3 | P a g e

3.5 Undertaking safety
inspection
Technical and safety
compliance
AU$ 500.00 AU$ 500.00 AU$ 500.00 Bottom up
estimation
N/A
4 Installation and
painting phase
AU$ 10,000.00 AU$ 10,000.00 Bottom up
estimation
N/A
4.1 Installation of
exhaust system
Installer AU$ 1,000.00 ---- AU$ 1,000.00 Bottom up
estimation
N/A
4.2 Installation of air
conditioning system
Construction
manager ,Contractor,
Installer
AU$ 3,000.00 ---- AU$ 3,000.00 Bottom up
estimation
N/A
4.3 Painting Painter AU$ 5,000.00 ---- AU$ 5,000.00 Bottom up
estimation
N/A
4.4 Installation of
needed software and
hardware
Installer, Technical
and safety compliance
AU$ 1,000.00 ---- AU$ 1,000.00 Bottom up
estimation
N/A
4 | P a g e