Project Scope and Cost Management: Case Studies and Analysis

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Project Scope and
Cost Management

Table of Contents
• Introduction
• Project Management Scope
• Cost management
• Case Studies
• Q & A
• Conclusion
• References

INTRODUCTION
• Project scope management and cost management.
• Three case studies are been highlighted in context of
which project scope management and cost management
strategies are been discussed.
• Project scope management is about defining, validating
and completing of a project.
• Cost management is determining the budget of the entire
project and the cost of maintenance after the completion
of the project.

Project management Scope
• Plan Development: Defining,
Validating and controlling of the
plan.
• Understanding Client
requirement: Managing and
documenting stakeholder’s needs.
• The scope of the project is
developed for identifying the
scopes that help in the timely
delivery of the project.

Cost Management

Case study 1:
Case Outline
• Designing an air conditioning unit for a three-story building.
• Two proposals were given by the contractor; the client went for the
proposal with least expensive upfront cost not considering the maintenance
cost throughout life.
• Within intervals of 12 months, the units went into maintenance for 3 times
for pipe rupturing that cost $30,000
• On argument with the client, as the client refused to pay the amount saying
it was a designing fault, the contractor had to bear the cost of repairing.

Cost challenges
• Cost accounting, not analysis: Analysis of the situations that might
be arising considering the maintenance cost.
• Forecasting and budgeting
• Progress report from different subcontractors
• Alignment of the data
• Effort and time with reporting
• Reporting timely and accurately
• Scenario analysis better best planning

Quality challenges and
project risk
1. Defining the goals poorly.
2. Creep Scope.
3. Improper communication.
4. The solution with less cost expensive:
• Cost of up-front.
• Maintenance cost.
• Repair cost.

Q & A
• 1. What were the challenges regarding the cost?
• Ans: Total cost including the maintenance cost, repairing cost, and the
cost of the life cycle of the air-conditioning.
• 2. What did the total repairing cost?
• Ans: The cost of repairing the air condition was $10,000 every time.
• 3. What was the problem that creates the issue between the client and
the contractor?
• Ans: The poor communication and the documentation between them
lead to the problem.

CASE STUDY 2:
SYDNEY OPERA HOUSE

Project scope
• Building the Opera house In Sydney.
• There were no limit to the cost.
• No limit of the time.
• There was three stages including
- Podium: Stage 1
- Outer Shells: Stage 2
- Windows and interior: stage 3.

Cost Management Challenges
• Controlling and Managing the overall change in project
• Inaccuracies Reporting
• Inefficient Systems and also the processes.
• Calculating the progress with accurate methods.