1. Determine the resources you will need for a project of your choice. You will need to establish what is required to complete tasks, as well as the quantities of sources. Importantly, you must ta
Project Cost
This is not a question answer format. You will need to provide me with a project management plan including Project Scope, Project Cost plan (plan, do check, act) and documents to support this, they must be formatted as forms and reports, just like if you were working as a project manager.
Create your own project and answer all of 4 question
Determine the resources you will need for a project of your choice. You will need to establish what is required to complete tasks, as well as the quantities of sources. Importantly, you must take budgets into account and priorities resources base on resource limitations.
Prepare a full budget and cost management plan for the project from the question one. Include all direct and indirect costs in the plan, and account for these in the budget.
Decide on appropriate key performance indicators and establish how they are going to be measured. How would you monitor all cost to make sure you are staying within budget?
How would you make adjustments if you felt progress is not being made, or expenditure is too high?
Describe how you would record all areas of expenditure according to your organisation’s protocols. Create a sample financial report that is laid out clearly and is easily understandable.
Please fill the answer in this form
This Cost Management Plan provides an overview of the cost management process applicable to this project and dictates the actions to be undertaken in the event of a cost variance.
Change the text in green
| Document Version Control | |
| Version Number | Date |
| 1.0- Current | 1/1/2000 |
| Budget Monitoring Frequency | Budget Reporting Frequency | Responsible Party |
| Weekly | Monthly (Contained within Status Report) | Project Manager |
| Degree of Estimate Required | Approval Point | Project Stage |
| +, - 30% | Approval in Principle | Concept |
| +,- 10% | Project Charter | Prior to Planning |
| +,- 5% | Cost Baseline | Prior to Implementation |
| Cost Variance | Required Action |
| Variances should be changed to indicate threshold levels | Lists the measures to be undertaken in the event for each respective cost variance. Actions should correspond with threshold amounts. These can be approvals, communications, confirmations, ceasing work, re-estimation etc. Example below |
| 0-5% | Nil, No immediate actions required. Variance must be communicated in line with cost reporting process |
| 5%-30% | Written Approval required from Project Manager. Variance must be communicated in line with cost reporting process |
| 30%-100% | Re-estimation of Project & Written Approval required from Project Manager and Project Client/Sponsor to continue |
| 100% + | Hold Project Activities & Written Approval required from Project Director and Project Client/Sponsor to continue |
Delegated Authority Spending Levels
The below shows the approved spending limits for the project team relating to the maximum a party can spend on a single item or works. This limit applies to the combined amount of split orders.
| Position | Spending Limit |
| Variances should be changed to indicate threshold levels | Actions should correspond with threshold amounts. These can be approvals, communications, confirmations, ceasing work, re-estimation etc. Example below |
| Project Director | $100,000 |
| Project Manager | $30,000 |
| Project Team Member | $5,000 |
The definitions and actions contained within this document have been agreed to by the undersigned:
| Parties should sign here to formalise document | Parties should sign here to formalise document |
| Project Manager | Project Sponsor/ Client |
| Change titles to suit authorisation parties I.e. Joe Smith | Change titles to suit authorisation parties I.e. Joe Smith |
