Project Report: WBS and Cost Budget Estimation for New Building

This report provides a detailed Work Breakdown Structure (WBS) and cost budget estimation for the construction of a state-of-the-art multimedia classroom. It employs a top-down cost estimation method, which is deemed suitable for aligning project activities and resource usage. The WBS outlines the project phases, from initiation and planning to design, execution, and closure, detailing specific tasks such as requirements analysis, design simulation, construction activities, and equipment installation. The cost budget includes a breakdown of human resources, material resources, and software costs, along with assumptions regarding standard rates and working durations. The total estimated budget for the project is €120,000. The report also references relevant literature on WBS and cost estimation methodologies.

Running head: WBS AND COST BUDGET ESTIMATION
WBS and Cost Budget Estimation:
Construction of a new building, state-of-the-art multimedia classroom
Name of the Student:
Student ID:
Name of the University:
Author’s Name:

1WBS AND COST BUDGET ESTIMATION
1. Cost Estimation Method
According to Bricola, Bilodeau and Beucher (2015), the use of the Top-Down Cost
Budget Estimation is very helpful for the alignment of the successive development of the
activities and alignment of the operations and it would help in easing the formation of the
resource usage analysis for summing the complete project budget. As opined by Ichoku and
Ellison (2014), the method would evaluate the project budget by considering the triangulation of
triple constraints of resources, time and money.
Yes, different types of methods should be used for different types of project and the
procurement method implied for the project. For example, the IT projects should be calculated
by the use of Top-Down Cost Budget Estimation, whereas the event projects should be
calculated by Bottom-Up Cost Budget Estimation.

2WBS AND COST BUDGET ESTIMATION
2. Work Breakdown Structure of Project
0
1
1.1
1.2
1.3
1.4
1.5
M1
2
2.1
2.2
2.3
2.4
M2
3
3.1
3.2
3.3
3.4
M3
4
4.1
4.1.1
4.1.2
4.1.3
4.1.4
4.1.5
4.1.6
4.1.7
4.1.8
4.1.9
M4
4.2
4.2.1
4.2.2
4.2.3
4.2.4
4.2.5
4.2.6
M5
5
5.1
5.2
5.3
5.4
M6
- Construction
of a new
building,
state-of-the-art
multimedia
classroom
- Initiation
Phase
- Planning
Phase
- Design
Phase
- Execution
Phase
-
Construction
Activities
-
Equipments
Installation
Activities
- Closing
Activities
- Analysing
the
requirements
of the project
-
Developing
Project
Initiation
Documents
- Forming
the Charter
Documents
-
Submission
of
documents
- Sign off
the
documents
- Project
Kick off
- Task List
is formed
- Activities
are
scheduled
via
scheduling
software
- Resource
Allocation is
done
- Complete
Plan is
developed
- Plan is
approved
- Client's
requirement
is analyzed
- Outline of
the design is
made
- Design
Simulation
- Complete
Design is
developed
- Design
Approval
- Classroom
Interior work
design is
made
-
Infrastructure
is developed
- LAN
wires are
spread
- 20
Computer
Desk are
made
- Station for
instructor is
developed
- Projector
Wires and
Screen are
made
- Chairs and
Other
infrastructure
are added
- Electric
Connetion
and Sockets
are added
- Fans,
Lights and
other
equipments
are added
-
Construction
is completed
- Computer
Systems are
installed
- Network
Switches
and Routers
are installed
- Projector
system is
installed
- Internet
Connection
is Installed
- Instructor
Station
equipments
are installed
- Mics and
Speakers are
installed
- Equipment
Installation
completed
- Quality
Testing and
Control
- Final
documentation
-
Submission
of
documents
- Sign off
the
documents
- Project is
Closed
Figure 1: WBS of the Project
(Source: created by the author)

3WBS AND COST BUDGET ESTIMATION
3. Cost Budget of Project
Resource Name Duration/Units Standard Rate Cost Sub-Total
Analyst 40.00 € 40.00 €
1,600.00
Documenter 120.00 € 50.00 €
6,000.00
Project Manager 40.00 € 150.00 €
6,000.00
Planner 80.00 € 50.00 €
4,000.00
Designer 112.00 € 80.00 €
8,960.00
Architect 24.00 € 70.00 €
1,680.00
Contractor 88.00 € 100.00 €
8,800.00
Telecom Engineer 64.00 € 90.00 €
5,760.00
Carpenter 128.00 € 85.00 €
10,880.00
Electrician 48.00 € 75.00 €
3,600.00
IT Engineer 56.00 € 125.00 €
7,000.00
Network Engineer 40.00 € 120.00 €
4,800.00
IT contractor 56.00 € 115.00 €
6,440.00
Tester 40.00 € 60.00 €
2,400.00
Total of Human Resources € 77,920.00
Schedule Software 1.00 € 150.00 €
150.00
Simulation Software 1.00 € 250.00 €
250.00
Design Tools 1.00 € 600.00 €
600.00
Construction Materials 1.00 € 8,000.00 €
8,000.00
LAN wires 1.00 € 250.00 €
250.00
Wood and Nut bolts 1.00 € 600.00 €
600.00

4WBS AND COST BUDGET ESTIMATION
Wires and Screen 1.00 € 800.00 €
800.00
Chairs and Furniture 1.00 € 1,200.00 €
1,200.00
Electric tools 1.00 € 1,500.00 €
1,500.00
Fans and Lights 1.00 € 1,150.00 €
1,150.00
Computer System 20.00 € 1,200.00 €
24,000.00
Switches and Routers 1.00 € 250.00 €
250.00
Projector 1.00 € 800.00 €
800.00
Cost of Internet
Connection
1.00 € 550.00 €
550.00
Station equipments 1.00 € 900.00 €
900.00
Mics and Speakers 1.00 € 560.00 €
560.00
Testing tools and software 1.00 € 520.00 €
520.00
Total of Material Resources € 42,080.00
Total Budget € 120,000.00
4. Assumptions made for Cost Estimation
The standard rates and the overall usage of the project resources have been made in the
project as shown in the table below,
Resource Name Work Standard Rate
Analyst 40 hrs 40.00 €/hr
Documenter 120
hrs 50.00 €/hr
Project Manager 40 hrs 150.00 €/hr
Planner 80 hrs 50.00 €/hr
Designer 112 80.00 €/hr

5WBS AND COST BUDGET ESTIMATION
hrs
Architect 24 hrs 70.00 €/hr
Contractor 88 hrs 100.00 €/hr
Telecom Engineer 64 hrs 90.00 €/hr
Carpenter 128
hrs 85.00 €/hr
Electrician 48 hrs 75.00 €/hr
IT Engineer 56 hrs 125.00 €/hr
Network Engineer 40 hrs 120.00 €/hr
IT contractor 56 hrs 115.00 €/hr
Tester 40 hrs 60.00 €/hr
Schedule Software 1 150.00 €
Simulation Software 1 250.00 €
Design Tools 1 600.00 €
Construction Materials 1 8,000.00 €
LAN wires 1 250.00 €
Wood and Nut bolts 1 600.00 €
Wires and Screen 1 800.00 €
Chairs and Furniture 1 1,200.00 €
Electric tools 1 1,500.00 €
Fans and Lights 1 1,150.00 €
Computer System 20 1,200.00 €
Switches and Routers 1 250.00 €
Projector 1 800.00 €
Cost of Internet Connection 1 550.00 €

6WBS AND COST BUDGET ESTIMATION
Station equipments 1 900.00 €
Mics and Speakers 1 560.00 €
Testing tools and software 1 520.00 €
The major assumptions for project have been pointed out below,
Resources Required: The resources of the project have been assumed depending on the
standard resources required for the project. The various human resources for the project are
analyst, documenter, project manager, planner, designer, architect, contractor, telecom engineer,
carpenter, electrician, IT engineer, network engineer, IT contractor, and tester. The material
resources for the project are schedule software, simulation software, design tools, construction
materials, LAN wires, wood and nut bolts, wires and screen, chairs and furniture, electric tools,
fans and lights, computer system, switches and routers, projector, cost of internet connection,
station equipments, mics and speakers, and testing tools and software.
Working Duration/Unit Used: The human resources have been set for working for 40
hrs, 120 hrs, 40 hrs, 80 hrs, 112 hrs, 24 hrs, 88 hrs, 64 hrs, 128 hrs, 48 hrs, 56 hrs, 40 hrs, 56 hrs,
and 40 hrs respectively for the human resources listed whereas the units consumed for the
materials are 20 for computer system and rest of the materials are 1. Standard rate of the human
and materials are also been assumed depending upon the market value.

7WBS AND COST BUDGET ESTIMATION
Bibliography
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