Project Cost Management Plan for Garden Development at Local Park

This project cost management plan outlines the strategies for controlling costs in the development of a garden for a local park. It begins with an introduction detailing the project's purpose and the poor soil quality identified. The plan then describes the cost management approach, utilizing a Cost Breakdown Structure (CBS) and Work Breakdown Structure (WBS) for effective budgeting and financial control. It defines the methods for measuring project costs, focusing on Earned Value Management (EVM) metrics like Schedule Variance (SV), Cost Variance (CV), Schedule Performance Index (SPI), and Cost Performance Index (CPI). Reporting formats, including monthly project status reports, are detailed, along with the cost variance response process, defining thresholds and corrective actions. The plan also covers the cost change control process, outlining how change requests are managed. Finally, a project budget is presented, including estimated and actual costs for various items with variance analysis. The plan aims to keep the project within budget and on schedule, ensuring successful completion of the garden development.

PROJECT COST
MANAGEMENT PLAN
INSTRUCTIONS: INSERT YOUR PROJECT’S NAME
DATE
INSTRUCTIONS: INSERT THE DATE

Table of Contents
1. INTRODUCTION........................................................................................................................2
2. COST MANAGEMENT APPROACH.................................................................................................2
3. MEASURING PROJECT COSTS.......................................................................................................2
4. REPORTING FORMAT.................................................................................................................3
5. COST VARIANCE RESPONSE PROCESS............................................................................................3
6. COST CHANGE CONTROL PROCESS................................................................................................3
7. PROJECT BUDGET.....................................................................................................................4
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1. INTRODUCTION
Instructions: Describe the purpose and contents of this plan.
Write your answer here
The main purpose of the project to design and development of a garden for the local park. For
this plan required to undeveloped land next to a river and conducted various test for land and
result report for soil quality which is quite poor and predominate clay.
2. COST MANAGEMENT APPROACH
Instructions: Explain your approach to the cost management of this project. For example, you
may refer to how you would use a Work Breakdown Structure when managing costs.
Write your answer here
A breakdown or hierarchical depiction of the different project expenses is known as a cost
breakdown system, or CBS. The Work Breakdown Structure's individual cost are represented by
the Cost Breakdown Structure (WBS). The CBS gives a framework for implementing
quantifiable price regulation and is an essential tool for overseeing the financial implications of
every enterprise. For Projects Management to effectively handle the financial element of any
project, the CBS is necessary. It provides the framework for planning that associated with an
increased have used to develop budgeting and compute numerous financial measures, including
planned value and estimation at accomplishment, price to finish, and variations.
3. MEASURING PROJECT COSTS
Instructions: Define how the project’s costs will be measured. For example, the PMBOK focuses
on Earned Value Management for measuring and controlling a project’s costs, such as Schedule
Variance (SV), Cost Variance (CV), Schedule Performance Index (SPI) and Cost Performance Index
(CPI).
Write your answer here
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Earned value engineering, a comprehensive and effective method, is used to track the project.
Four Earned Value metrics were applied in our research study:
1. Changes in the Plan (SV): A statistic used to gauge a project's performance is scheduling
variance (SV).
2. Cost Variation (CV): Cost Variance (CV) is a gauge of a project's adherence to its
expenditure.
3. Index of Schedule Performance (SPI) The Schedule Performance Index (SPI) contrasts actual
development with predictions.
Indicator of Cost Performance
4. (CPI).
The Cost Performance Index (CPI) contrasts the worth of final project with its actual cost.
The project's cost baseline is the area involved with how much revenue the project is anticipated
to cost and the date it will be spent. They adopted a bottom-up technique to determine the cost
baseline for the present project.
4. REPORTING FORMAT
Instructions: Describe the reporting approaches you will take for cost management, such as
including reporting in a monthly project status report.
Write your answer here
The progress report on the progress of the application will include cost management information.
The Monthly Project Plan will also include a component under "Cost Management." This stage
will also incorporate the Earned Value Indicators mentioned in the preceding part. Such strategic
plans and actions, as well as any cost fluctuations that go beyond the parameters specified in this
planning exercise, shall be publicized on. This report will list and keep track of Proposed
Changes that are brought on by project expense cost increases.
The task of determining and keeping track of the project's expenses will fall to the project leader.
Even during time of review, the consultant will be required to discuss and evaluate the
development's performance indicators for the previous month. Performance will be judged using
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planned value. In order to get the project on schedule, the Project Leader is in responsible of
keeping a record of price deviations and recommending fixes to the Project Manager. To bring
the project back on track the Project Manager has the power to make adjustments.
5. COST VARIANCE RESPONSE PROCESS
Instructions: Define the control thresholds for the project and what actions will be taken if the
project triggers a control threshold.
For example, as a part of the response process the Project Manager typically presents options
for corrective action to the Project Sponsor who will then approve an appropriate action in order
to bring the project back on budget. The Project Manager may propose to increase the budget
for the project, reduce scope or quality, or some other corrective action.
Write your answer here
A threshold might be a higher or lower limitation depending on the situation. In managing
projects, thresholds can also be used to specify the upper bound of an acceptable price or
spending. It has the potential to describe the longest possible duration for a process or an activity
to last. It could be used to describe the absolute necessities of adequate standard for any given
finished task or item. The risk threshold is viewed as a progression from risk tolerance since it
gives the risk tolerance an exact numerical value. Thus, although risk appetite has its bounds, the
risk threshold provides a precise estimate of the risk.
6. COST CHANGE CONTROL PROCESS
Instructions: Detail the change control process, including any special requirements for this
process.
Write your answer here
Change requests for large-scale initiatives and tasks are managed through the change
control system. It's a component of a change management strategy that establishes the
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responsibility for the management change inside a group or organisation. Although a change
process has many components, it is best to conceive of it as including the creation of a revised
draft where you will monitor project required changes.
Any stakeholder will typically be able to ask for a change. A request can be for a minor
change to the project timeline or it might be for a brand-new delivery. It's crucial to remember
that not all proposals will be granted because crucial parties have the authority to accept or reject
modification requests.
7. PROJECT BUDGET
Instructions: Outline the project’s budget. For example, you may refer to fixed costs, material
costs, contractor costs and total project costs.
Write your answer here
Cost Item Estimate Actual Variance
%
Comment
Land 4000 3000 1000
Staff 10000 8000 2000
Rent/mortgage 15000 12000 3000
Staffing 25000 22000 3000
Utilities (phone, electricity, water
& gas)
6000 5500 500
Repairs/maintenance 7000 4000 3000
Cleaning 8000 6000 2000
Bank fees 9000 5000 4000
Public liability insurance 6000 5000 1000
Taxation 8000 6000 2000
Supplies expenses 10000 8000 2000
Consultants / Professional fees 1200 800 400
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Cost Item Estimate Actual Variance
%
Comment
Transport costs 1500 1000 500
Changes to business practices 1300 1100 200
Additional operating costs 1900 1500 400
Participation fees 2000 1500 500
Office expenses 5100 4500 600
Contingency % with
justification:
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<Justification>
Total
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