Business Development Project: Budget and Resource Management

This project presents a budget and resource management plan utilizing a top-down approach for a carnival project. It details cost estimation methods, comparing original and updated budgets across various categories like labor, materials, contractors, equipment, and travel, with explanations for budget variances. A contingency plan, allocating 7% of the budget, is justified to address potential risks such as theft, fire, labor mismanagement, and injuries. The project also outlines resource management strategies including team motivation techniques like fair compensation, positive reinforcement, and empowering team members. Furthermore, it addresses conflict management through acknowledging problems, impartial leadership, open communication, and decisive action. The project concludes with a description of the project structure, detailing the steps from defining objectives to final documentation.

Budget and Resource Management Plan
Project Budget
1. Estimation Methods
The method which we used in our project in order to come up with our cost estimate is the top-
down approach. The top- down approach is commonly used in the project management. In this
approach, all the aspects come from the top i.e. the top management level. The objectives of the
project were designed by the top management. The top managers gave all the guidelines and
plans in order to complete the project. In this approach, top managers are the ones who are
responsible for the failure. Earlier the managers were confused that which they should use as
there was chaos in the management team and there were more failures in the system of project
management. Then the team decided to come up with the top-down approach by appointing top
level managers. This approach helped in estimating the cost correctly. As there were very fewer
changes in the original budget and the updated budget of the project management. The project
team easily maintained the updated budget without any problem. The top-down approach helped
the project team in every possible way whether it is about estimating the budget, dividing the
work among the team members and the volunteers, etc. Below is the table which will give the
clear understanding that how the top- down approach helped the project team effectively. The
difference between the original budget and the updated budget will show the effectiveness.
2. Budget
Category Original
budget
(Charter)
Updated
budget
Explanation of the
difference between the
two budgets
Estimated Labor $2,000 $2200 The difference is of $200 as we
will be hiring more labor in
order to carry the equipment
more effectively.
Estimated Materials $3,000 $3100 The difference is of $100 as we
require more materials in order
to effectively develop the stage

of the performers.
Estimated Contractors $1,000 $1500 The difference is of $500 as we
require more contractors to get
the resources.
Estimated Equipment and
Facilities
$10,000 $11,000 The difference is of $1000 as we
require more equipment in order
to complete the carnival
effectively.
Estimated Travel $4,000 $3900 The difference is $100 as we
saved our money in the traveling
expenses because maximum
people will be coming by their
own vehicle.
Total Estimated Cost $20,000 $21,700 The total difference in the actual
budget and the updated budget is
$1700.
3. Budget Contingency Plan
 Contingency amount
We will be keeping the contingency amount of 7% of our budget for the project management
because if any unforeseen event occurs then, we will be able to handle it by keeping the
contingency amount aside. If we do not do this, then our project will get badly impacted. We
have to be prepared for such events in order to get success in our project.
 Justification
Our team has selected the contingency amount because in our project there are chances of
stealing the important information, fire, mismanagement in the labor and injuries while handling
machines and equipment. Our team doesn’t want that our project gets affected by these
unforeseen events as it will incur huge cost and loss to our project. So we want to be prepared in
advance in order to deal with such type of events. There are chances of fire because we are
hosting a carnival and the venue might catch fire as there will be stoves for the food and
beverages. There might be mismanagement and chaos among the labor which might affect the
usage of resources. The laborers may get injured while working on the site of the venue.
Therefore, we will take care of their safety completely but still the unforeseen event happens; we
have contingency amount.
Resource Management

1. Resource Assignments
2. Team Management Plan
 Motivation
There are some strategies which we will be using in order to motivate our team, and the
strategies are as follows:
 We will be paying the laborers and contractors according to their worth so that they
remain motivated and try to work more effectively and efficiently.
 We will try to find that they are happy while working because their behavior and attitude
will affect their performance.
 We will not punish any member of our team because we all make mistakes and it is better
to learn from the mistakes and move on and should not repeat them.
 We will avoid the useless meetings because it will interrupt the performance of the team
and the team members might feel annoyed.
 We will give a chance to our team members to take small decisions with themselves and
should not ask the top managers very now and then. By this, the team members will feel
authoritative, and they get motivated.

 Conflict Management
There some techniques which we will be using in order to handle the conflicts in our team and
the techniques are as follows:
 We will tell our team to acknowledge the problem whether it is small or a big one so that
it doesn't create a problem in the long run.
 The top management of our project will focus on the project and not on the people
without any biases.
 The top management of our team will listen to the problems patiently without getting
annoyed . Otherwise the conflict will arise.
 We will keep the communication open with our team so that there will be no chaos
among the team members and this also help in solving the conflicts as people will interact
more.
 We will act decisively as we will listen to both the parties and will gather relevant
information before taking any action.
3. Project Structure
Initially, we decided that what we want to host a cancer carnival then we will be determining the
objectives of the project scope, analyze the current situation. Then we will assess the equipment
and will prepare the report for the same. Then we will contact the suppliers and contractors and
will also hire some volunteers. Then we will prepare the final documentation.