PROJ6002 Project Planning and Budgeting - Scope and Time Management Plan - Case Study Assignment Help

Project Cost Management Approach

Overview to Vehicle Maintenance Facility

The predefined case study discusses a hypothetical project for a vehicle maintenance facility. The project scope and budget has been fixed and established between the general contractor and the project owner as of project development. The prerequisite approvals for zoning and code have been attained, and the site is prepared to be commenced for the construction work. The activities from commencement to the completion of the project may be separated into the following activities: 

• Preliminary work on-site prior commencing the construction work
• Launching the foundation by creating platforms, stair accesses, walls, and implementing underground electric ducts and plumbing
• Creating the core structure and covering the building under construction
• Working on the interiors of the office area and furnishing the office area based on the pre-requisites for toilets and employees 
• Construction of service bays and their finishing. 
• Final work on site: Completing work apart from office area and service inlets including landscaping and creating the main entrance indication.
• A certificate for occupancy will be acquired and the project might be marked as completed after conducting the final testing, inspection, and cleaning. 

Costs Estimation

A number of inputs are needed in order to estimate the budget’s cost, which include:

• Resources needed
• Work breakdown structure
• Various resources rates
• Duration estimates of different tasks

Source: (Stamelos & Angelis, 2001)

Tools and Techniques used for Cost Estimation

Parametric modeling

The project attributes or parameters are utilized in a mathematical model for predicting the project costs in parametric modeling (Chan & Park, 2005). Models might be more complex or simple based on the project’s nature. For example, construction costs can be measured per square feet of commercial space in the existing project (Turrin, Von Buelow & Stouffs, 2011). There might be broad differences in the accuracy and cost of this technique. It is more appropriate in the situations when readily quantifiable parameters are utilized in the model; historical information are used for accurate development; and the scalable model for both small and large projects. 

Computerized Tools

Software or spreadsheets for project management are some of the broadly utilized tools in order to estimate the cost of a project. These tools assist in streamlining the use of tools and techniques for providing quick facilitation in order to consider costing requirements (Patil et al., 2020). 

Analogous Estimation

It uses actual cost findings from prior and current project on the basis to estimate the costs for the existing project. This tool aids in estimating the overall project cost in the presence of limited information about the project (Li, Xie & Goh, 2009). This technique is less accurate even though this technique can be based on two conditions. On the other hand, the actual similarity required expertise with the previous projects. 

Bottom-up Estimating

It uses the cost estimation of individual items in order to summarize such individual measures to accomplish overall project cost. The accuracy and cost of this technique rely on the size of such items as both elevate when the work items are minimal.