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UnitVICourseProjectComplete.doc
2
Cost Estimation and Budgeting
James B. Christa
Columbia Southern University
Cost Estimation and Budgeting
5. Project Budget
5.1 Project Resources
In this project, resources are categorized as follows
i. Human resources: These are the members of the project team
ii. Financial resources: This is the money needed to facilitate the project activities
iii. Material resources: This refers to the machines, software, and other equipment and tools needed to make the project successful
iv. Time resources: This is the time needed to undertake the project
|
Resource |
Description |
Cost |
|
Human Resources |
They will be paid salaries and allowances for the duration of the project |
$ 800,000 |
|
Financial Resources |
This is the total cost of the project |
$ 10,000,000 |
|
Material resources |
This is the cost of buying all equipment, devices, machines, and tools needed in the project |
$ 9,200,000 |
|
Time Resources |
This is the time that will be invested into ensuring the project is delivered |
N/A |
5.2 Other Costs
|
Items |
Cost |
|
Equipment |
|
|
Full set computer systems (system units and monitors) |
$ 5,000,000 |
|
Networking devices and cables |
$ 1,000,000 |
|
Software |
$ 50,000 |
|
Overhead Costs |
$ 30,000 |
|
Expediting Expenses |
$ 20,000 |
5.3 Cost Estimates
|
Estimates |
Amount |
|
Ballpark estimate |
$ 10,000,000 |
|
Comparative estimates |
$ 6,000,000 |
|
Feasibility estimate |
$ 9,000,000 |
The comparative estimate was based on the current system that should be upgraded. The estimate is lower than what the current project will cost because it is based on past data. The ballpark estimate is based on the idea that current equipment is more expensive. The project will cost more than the current system. The feasibility estimate was reached after the actual budget was developed. It is a more realistic estimate.
5.4 Time-Phased Budget
|
|
|
Month |
|||||
|
Activity |
May |
June |
July |
August |
September |
October |
Total by activity |
|
Survey |
$10,000 |
$10,000 |
|||||
|
Design |
$10,000 |
$5,000 |
$15,000 |
||||
|
Purchases |
$8,000,000 |
$1,200,000 |
$9,200,000 |
||||
|
Installation |
$10,000 |
$5,000 |
$10,000 |
$25,000 |
|||
|
Testing |
$5,000 |
$5,000 |
$10,000 |
||||
|
Monthly Budget |
$20,000 |
$5,000 |
$8,010,000 |
$1,205,000 |
$15,000 |
$5,000 |
|
|
Cumulative |
$20,000 |
$25,000 |
$,8,035,000 |
$9,060,000 |
$9,075,000 |
$9,260,000 |
$9,260,000 |
