RMIT Project Management: Sunshine Coast Airport Cost/Budget Report

This report provides a detailed cost and budget management analysis of the Sunshine Coast Airport runway project. It begins with an estimated cost of $121,582,480.00 for the runway construction, broken down by project activities with their associated costs and durations. The report includes a cash flow analysis to understand monthly cost utilization and project earnings, as well as discussions on contingency planning and reporting. It outlines cost monitoring and control steps, change control procedures, and the project's successful closure within the approved budget. The report highlights key aspects of the project like the initiation phase, feasibility studies, project planning, design, execution, and closure. The cash flow analysis is presented visually, and the report provides a breakdown of costs for each project phase, emphasizing the importance of cost management throughout the project lifecycle.

Running head: PROJECT MANAGEMENT
Case Study- Sunshine Coast Airport
Name of the Student
Name of the University
Author’s Note

1
PROJECT MANAGEMENT
Table of Contents
8. Cost /budget management......................................................................................................2
8.4 Estimated cost..................................................................................................................2
8.5 Cost baseline..................................................................................................................10
8.5.1 Cash Flow................................................................................................................10
8.5.2 Contingency and specific exclusion........................................................................11
8.5.3 Reporting.................................................................................................................11
8.6 Cost monitoring and control...........................................................................................11
8.7 Cost change control........................................................................................................12
8.8 Cost Closing...................................................................................................................12
Bibliography.............................................................................................................................14

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PROJECT MANAGEMENT
8. Cost /budget management
8.4 Estimated cost
It is found that in order to construct the runway for the Sunshine Coast Airport, the
council requests the Common wealth Government for investing $122 million. It is analyzed
that the construction of the runway for the Sunshine Coast Airport would be estimated to get
completed within the budget that is around $ 121,582,480.00. The table that is provided
below reflects on the cost that is needed for executing each of the activities of the project.
Task Name Duration Start Finish Predecessors
Resource
Names
Cost
Construction
of runway in
Sunshine
Coast Airport
572 days
Mon 22-
10-18
Tue 29-12-
20
$
121,582,480.00
Initiation
phase
95 days
Mon 22-
10-18
Fri 01-03-
19
$ 73,800.00
Business
case
development
20 days
Mon 22-10-
18
Fri 16-11-
18
Project
manager
$ 9,600.00
Undertaking
feasibility
22 days Mon 19-11-
18
Tue 18-12-
18
2 Financial
manager,
Project
$ 17,600.00

3
PROJECT MANAGEMENT
study of the
project
planner
Establishing
project charter
26 days
Wed 19-12-
18
Wed 23-
01-19
3
Project
manager,
Project
planner
$ 23,920.00
Appointment
of team
members
27 days
Thu 24-01-
19
Fri 01-03-
19
4
Project
manager,
HR.
manager
$ 22,680.00
Milestone
1: Performing
phase review
0 days
Fri 01-03-
19
Fri 01-03-
19
5 $ 0.00
Planning
phase
137 days
Mon 04-
03-19
Tue 10-09-
19
$ 82,000.00
Development
of project plan
25 days
Mon 04-03-
19
Fri 05-04-
19
5
Project
manager,
Project
planner
$ 23,000.00
22 days Mon 08-04- Tue 07-05- 8 Hr. manager $ 7,920.00

4
PROJECT MANAGEMENT
Development
of resource
plan
19 19
Development
of financial
plan
20 days
Wed 08-05-
19
Tue 04-06-
19
9
Financial
manager
$ 7,200.00
Development
of quality plan
25 days
Wed 05-06-
19
Tue 09-07-
19
10
Quality
analyst,
Team
members
$ 18,000.00
Development
of risk
management
plan
23 days
Wed 10-07-
19
Fri 09-08-
19
11
Risk
manager
$ 8,280.00
Development
of
communication
22 days Mon 12-08-
19
Tue 10-09-
19
12 Hr.
manager,
Project
$ 17,600.00

5
PROJECT MANAGEMENT
plan planner
Milestone
2: Completion
of planning
phase
0 days
Tue 10-09-
19
Tue 10-09-
19
13 $ 0.00
Designing
phase
72 days
Wed 11-
09-19
Thu 19-
12-19
$ 75,160.00
Developing
design for the
development
of runway
27 days
Wed 11-09-
19
Thu 17-10-
19
13
Contractor,
Team
members
$ 20,520.00
Completion of
the design
20 days
Fri 18-10-
19
Thu 14-11-
19
16
Contractor,
Supervisor,
Sub-
contractor,
Team
members
$ 30,400.00
Cross-
checking of the
design
18 days Fri 15-11-
19
Tue 10-12-
19
17 Supervisor,
Quality
analyst, Risk
$ 20,880.00

6
PROJECT MANAGEMENT
manager
Approval
of the design
7 days
Wed 11-12-
19
Thu 19-12-
19
18
Project
manager
$ 3,360.00
Milestone
4: Completion
of the design
0 days
Thu 19-12-
19
Thu 19-12-
19
19 $ 0.00
Execution
phase
238 days
Fri 20-12-
19
Tue 17-11-
20
$
121,333,200.00
Development
of east-west
runway
45 days
Fri 20-12-
19
Thu 20-02-
20
19
Contractor,
Supervisor,
Project
requirements
[1], Sub-
contractor
$
91,054,000.00
Development
of runway
infrastructure
40 days Fri 21-02-
20
Thu 16-04-
20
22 Contractor,
Additional
cost [1],
Supervisor,
Sub-
$
30,048,000.00

7
PROJECT MANAGEMENT
contractor
Accessing
traditional
airside land
35 days
Fri 17-04-
20
Thu 04-06-
20
23
Contractor,
Supervisor,
Sub-
contractor,
Team
members
$ 53,200.00
Terminal
development
34 days
Fri 05-06-
20
Wed 22-
07-20
24
Contractor,
Hr.
manager,
Sub-
contractor,
Team
members
$ 50,320.00
Enhancement
to the existing
taxiway and
apron system
32 days Thu 23-07-
20
Fri 04-09-
20
25 Contractor,
Supervisor,
Sub-
contractor,
Team
$ 48,640.00

8
PROJECT MANAGEMENT
members
Long term
protection of
airspace
30 days
Mon 07-09-
20
Fri 16-10-
20
26
Contractor,
Supervisor,
Sub-
contractor,
Team
members
$ 45,600.00
Reservation of
land
22 days
Mon 19-10-
20
Tue 17-11-
20
27
Contractor,
Supervisor,
Sub-
contractor,
Team
members
$ 33,440.00
Milestone
5: Completion
of execution
phase
0 days
Tue 17-11-
20
Tue 17-11-
20
28 $ 0.00
Closure
phase
30 days
Wed 18-
11-20
Tue 29-12-
20
$ 18,320.00
Post 12 days Wed 18-11- Thu 03-12- 28 Project $ 5,280.00

9
PROJECT MANAGEMENT
project review 20 20 planner
Stakeholder
sign off
8 days
Fri 04-12-
20
Tue 15-12-
20
31
Project
manager
$ 3,840.00
Documentation
10 days
Wed 16-12-
20
Tue 29-12-
20
32
Project
manager,
Project
planner
$ 9,200.00
Milestone
6: Completion
of closure
phase
0 days
Tue 29-12-
20
Tue 29-12-
20
33 $ 0.00
8.5 Cost baseline
8.5.1 Cash Flow
Project cash flow is considered as one of the parts of financial planning in order to
understand the cost that is utilized on a monthly basis in order to complete the progress of the
entire project. The cash flow is helpful in projecting the earnings, schedule planning as well
as for making the operation of the project quite efficiently. Moreover, it is found that the
cash flow assists in organizing the plan as well as helps in improving the incoming cash flow.
The cash flow for the project “Construction of runway in Sunshine Coast Airport” is provided
below:

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PROJECT MANAGEMENT
October 2018
December 2018
February 2019
April 2019
June 2019
August 2019
October 2019
December 2019
February 2020
April 2020
June 2020
August 2020
October 2020
December 2020
$ 0.00
$ 5,000,000.00
$ 10,000,000.00
$ 15,000,000.00
$ 20,000,000.00
$ 25,000,000.00
$ 30,000,000.00
$ 35,000,000.00
$ 40,000,000.00
$ 45,000,000.00
$ 50,000,000.00
Cash Flow
Cost
Figure 1: Cash Flow for the project “Construction of runway in Sunshine Coast
Airport”
(Source: Created by Author)
8.5.2 Contingency and specific exclusion
The specific exclusion contingency as well as exclusion are generally elaborated
below:
 The cost that is needed for the project is assumed but however if the time that
is needed for finishing the project extends then there will be rise in the need of
the total budget of the project.
 It is found that the budget that is needed for the requirement of the project is
estimated but the rise in the prices of the project requirements is unpredictable.
 The cost that is associated with the human resources can enhance with the
enhancing need of the human resources in order to finish the work of the
project quite efficiently.

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PROJECT MANAGEMENT
8.5.3 Reporting
Reporting is very much necessary within the project in order to track the status of the
budget that is generally utilized within the project in order to achieve progress. The
information related with the utilization of project budget should be informed to the higher
management of the project with the help of tracking so that they keep track on the status as
well as utilization of budget. It is found that reporting plays an important role in managing
the budget successfully so that entire project can be successfully completed within the budget
that is approved by the Common wealth Government.
Project reporting assists in tracking, identifying risks, managing the cost of the
project as well as helps in increasing the visibility of the entire organization. Regression
Moreover, the reporting assists in controlling the project in order to allow the progress,
stagnation as well as regress of certain elements. In addition to this, it assists in checking how
the team members of the project are performing.
8.6 Cost monitoring and control
The steps for monitoring as well as controlling the cost of the project are listed below:
Monitoring project planning: It is necessary to monitor as well as control the
various parameters of the project including schedule costing, timeline. It is quite necessary
for the project managers to successfully track the different project metrics so that cost of the
project can be controlled as well as monitored effectively.
Monitoring commitments: It is also necessary to track the commitment of the
stakeholders within the project including completion of post project reviews and for ensuring
that the entire project gets completed within the budget that is approved.