Project cost management

Presented bygroup-4Presented tosir.ch ahsan maqbool

Project cost management26 january 2014Group 4Waseem ShahzadM.Omer KhanHaider CheemaM.AhsanM.ZiaSyed Hussain HaiderAgenda of presentationAssignment-1Present Cost Management PlanAssignment-2Scope of Project along with complete WBS in diagram formatCost estimate of the complete scope in WBS at each levelRisk register with contingency response planSchedule estimate and detail schedule of all the activities and deliverables in WBSFinal project budgetASSIGNMENT-1Present cost management plan1. Project DescriptionThe challenge of this project is to design the tower to make optimum use of the minimumsheets of paper in order to achieve the greatest tower height and beauty. The design of thebase will also be challenging, as the tower must be free standing.2. PurposeThe purpose of this cost management plan is to calculate the cost of a paper tower project inaccordance with the given requirements and to apply Earned Value Management (EVM) forthe monitoring and control of execution of the construction project as part of a projectmanagement course.3. ObjectiveThe Cost Management Plan will define how the costs on project will be managed throughoutthe projects lifecycle. It will set the format and parameters by which the project cost ismeasured, reported and controlled. The Cost Management Plan:Cost management responsibility.Cost changes approval authority.Measurement of cost performance (Thresholds).Report formats & Frequency.4. Project ConstraintsProject constraints areTime, quality and scopeHeight and beautyBe stabilize and free standing

5. Stakeholder registerNamePositionResponsibility / AuthorityWaseem ShahzadProject DirectorThe Project Director is responsible for approval ofthe Project Cost Management Plan and is ultimatelyresponsible for the allocation and expenditure of theproject budgetM.Omer KhanProject ManagerThe Project Manager is responsible for managing andreviewing project costs from a project managementperspective to ensure appropriate progress is beingmade for the funds being expended. The ProjectManager works with the financial staff to reconcilethe cost management data to the current accountingDataContd.NamePositionResponsibility / AuthorityHaider CheemaProject FinancialManagerThe Financial Manager is responsible for budget &cost preparation, sponsoring cost budgeting andtracking activities, facilitating communication onfiscal status, and ensuring the project cost tool ismaintained and supporting documentation ismaintained. The Financial Manager is responsible forproviding the Project Manager withrecommendations and status on the project budgetand expendituresM.AhsanConstructionManagerThe construction manager is responsible for constructionof project as per specification of project.Contd.NamePositionResponsibility / AuthorityM.ZiaConstructionManagerThe construction manager is responsible for constructionof project as per specification of project.Syed HussainHaidersProjectCoordinatorThe coordinator is responsible for coordination of theproject, submission of documents to sponsor andapprovals (technical & financial) from sponsor.Ch.AhsanMaqboolSponsorThe sponsor will be the final authority of any conflict,revision in cost due to any reason and will be responsiblefor timely approvals of technical and financial matters.6. State Budget and Accounting ApproachThe following sections summarize the projects involvement in the state budget and accounting processes.Step 1 - Budget PlanningStep 2 - Acquisitions TrackingStep 3 - Acquisitions Reports and MetricsStep 4 - Changes to the BudgetStep 5 - Budget ReconciliationThe section introduction should remain untouched.The following sections should describe the high-level processes and interaction of participants.6.1 Budget PlanningThe project budget will be prepared based on data provided by the project; the funding for the project will only secured for one month.The Project Manager and Project Financial Manager will review the budget against the cost estimates, and adjust the cost baseline, if necessary.6.2 Acquisitions TrackingAfter the Budget Act is signed, the project may begin expending the funds. Typically the expenditures include acquisitions for products and services, personnel costs, and operations costs. The project manager will proceed to procure and pay for the necessary items6.3 Acquisitions Reports and MetricsExpenditure reports will be generated for project use in validation and tracking of expenditures against the budget. The Project Coordinator will be responsible for sending appropriate reports to the sponsor, as requested.6.4 Changes to the BudgetIf the project budget needs to be adjusted, the Project Manager will determine. If a change is deemed necessary, the financial manager will develop the approval document. The project coordinator will coordinate the submission and approvals of the document(s) in accordance with the state budget cycle.Once the change will approved and included in the appropriate fiscal year budget, the ProjectManager will work with the financial manager to re-baseline the cost data and estimates.6.5 Budget ReconciliationProject coordinator will coordinate with other project members to reconcile each others books independently. Reconciliation with sponsor will also be made after revision.7 REPORTING FORMATReporting for cost management will be included in the project status report.Key Milestones Table (those that represent significant project progress)

Contd.Change Requests which are triggered based upon project cost overruns will be identified and tracked in this report.

Contd.

Contd.

Contd.All cost variances outside of the thresholds identified in this Cost Management Plan will be reported on including any corrective actions which are planned.

8 COST MANAGEMENT APPROACH (UPTO REV-0)Activities list down.Creation of WBS.Budget preparationContract agreementCash inflows & outflow8.1 InitiateBudget Rev-0Project financial manager will collect the following data from Client/Sponsor for preparation of:EPC Cost sheet summaryBaseline ScopeContractsProject ScheduleResource DeploymentOrganization Structure8.2 PlanBudget Rev-0 or Bid to Budget will be prepared by the financial manager at initial stage of project, based on data from Proposals. Bid to Budget is prepared by transferring estimation data into the budget formats without any major changes.Budget Rev-0 will be issued within first hour after award of project.8.3 Project BudgetThe budget (Rev-0) for this project is as under:Fixed Costs: 350 PKRMaterial Costs 3706 PKRTotal Project Cost 4057 PKRManagement Reserve 800 PKRDetailed BOQ and initial costing is enclosed with this document as Annexture-1.

SPONSOR ACCEPTANCEApproved by the Project Sponsor:_____________________ Date: ___________________Ch.Ahsan MaqboolAnnexure-1

ASSIGNMENT-2SCOPE OF PROJECTBuild a paper tower in accordance with given requirements and to apply Earned Value Management (EVM) for the monitoring and control of execution of the construction project as part of a project management course.WORK BREAK DOWN STRUCTURE

SCHEDULE

RISK REGISTER WITH CONTIGENCY RESPONSE PLAN

COST ESTIMATE

PROJECT BUDGETThe budget (Rev-0) for this project is as under:Fixed Costs: 350 PKRMaterial Costs 3706 PKRTotal Project Cost 4057 PKRManagement Reserve 800 PKR

SPONSOR ACCEPTANCEApproved by the Project Sponsor:

_____________________ Date: ___________________Ch.Ahsan MaqboolIf you have any questions, Ill be happy to answer them at the end.