Cost Estimation And Budget Plan For A Bungalow Project

Project cost estimate

1.1 Project cost estimate

The cost estimate for the project is provided in the table below:

1.2 Project budget baseline

1.3 Tools and techniques that are used

 The tools and techniques that can be utilized for estimating the cost of the project are as follows:

 Expert Judgement: It generally utilizes the knowledge as well as experience of the experts who are involved with the project for estimating the cost of the project successfully (Fayard et al., 2014). It is found that this technique can take number of factors into account and thus it can be biased.

Analogous estimation: Analogous estimation utilizes historical data of the similar projects as a basis in order to estimate the cost of the project. This method of estimate is generally can be adjusted for knowing the differences that exists between various projects. This type of estimate is mainly utilized in the initiation phase of the project. It is identified that this method of technique is not much accurate as compared to other methods that are used (Gopalakrishnan et al., 2015).

Parametric estimation: It is found that parametric estimation generally utilizes statistical model for estimating the cost. It generally uses historical data of key cost drivers for calculating a estimate for various parameters including the cost and duration.

Bottom up estimation: It generally utilizes the estimate of different work packages, which are mainly summarized as rolled up for determining the overcall cot that is required for finishing the project (Liu et al., 2015). It is found that this technique of cost estimate is quite accurate as compared to other methods as it generally reflects on the cost from a much more granular perspective.

Three-point estimation: Three-point estimation was mainly originated with the help of program evaluation as well as review technique. This method mainly utilizes three estimates for defining an approximation range for the various activities related cost. The most likely cost estimation is done with the help of the formula= (C0+4Cm+Cp)/6.

Reserve analysis: Reserve analysis is mainly utilized for determining the contingency reserve and it must be properly allocated to the entire project. This method of funding is mainly utilized for estimating the cost uncertainty.

Project management estimating software: It found that project management estimating software includes cost estimation related applications, simulation applications, spreadsheet as well as statistical software related tools (Sunil, Pathirage & Underwood, 2015). This type of software is mainly us at cost estimation related alternatives.

Vendor analysis: This method is mainly utilized for estimating that the cost of the project by making proper comparison with the help of the bids that is mainly submitted by multiple vendors.

1.4 Justification for the budgetary plan

 It is found that three-point cost estimation method is mainly utilized for estimating the cost that is associated with the bungalow project. This method is mainly selected as the project considers both optimistic and Pessimistic situations. It is identified from the project that if everything goes right then the schedule of the project will get completed 20% faster whereas if something went wrong then time of the project enhances by 50%. It is found that both the situation creates impact on the cost of the project (Boute, Bruggeman & Vereecke, 2014).  This method is generally considered as accurate method of cost estimation. The cost that is estimated through three-point estimation method is provided in the table below:

Project budget baseline

2. Quality management plan

2.1 Quality roles and responsibilities

 The roles and responsibilities are listed below:

Supervisor: The supervisors are the persons who are mainly responsible for completing the day-to-day performance of the project. It is found that they generally helps in checking the materials that are used, quality of training delivered, and performance of the team for maintain the quality of the project for avoiding problems and issues (Goetsch & Davis, 2014).

Labourers: The labourers who are mainly involved with the Bungalow project are mainly responsible of laying foundations, developing over site concrete, plumbing as well as plastering for finishing the entire project with proper quality.

Tradesman: The tradesman who are associated with the bungalow project are generally responsible of completing the various activities of the project including development of skirting, plumbing, plastering, main walls and more properly for avoiding quality related challenges (Sanz-Calcedo et al., 2015).

Project manager: The project manager is the person, who is mainly responsible of organizing, planning both the time and resources of the project for finishing the entire project within the time that is estimated. They are also responsible of checking, monitoring as well as assembling the entire project so that no quality related issues could occur within the project.

2.2 Quality planning approach

The quality of the Bungalow project will be maintained properly if the goals and objectives, which are related with the project, are achieved properly. It is found that it is quite necessary to utilize integrated quality approach for proper planning of project in order to maintain quality. Integrated quality approach are mainly utilized for measuring, defining as well as for improving the quality of the project effectively (Molina-Azorín,  et al., 2015).

The quality of the project will generally focus on the procedures and processes with the help of which proper project deliverable is developed. It is identified that proper establishment of standard that are associated with the quality are very much beneficial in delivering the entire project successfully with proper quality. The metrics, which should be properly maintained for maintaining the project quality, includes cost, resources, customer satisfaction, product performance and more.

2.3 Quality assurance approach

 Quality assurance approach generally reflects on the processes, which are generally used in order to construct the Bungalow project. In order to ensure the quality of the project, it is identified that an iterative procedure will generally be used throughout the project lifecycle (O’Neill, Sohal & Teng, 2016).  It is found that this iterative procedure generally includes measurement of various metrics, improving the process as well as analysis of data. It is the responsibility of the project manager to conduct quality-monitoring processes on a daily basis for monitoring the performance of the project.

2.4 Quality control approach

 The quality of the Bungalow project needs to be maintained and for this the challenges and issues, which are mainly associated with the project, needs to be controlled (Zeng, Phan & Matsui, 2015).  It is the responsibility of both the quality analyst as well as the project manager to work together and focus on monitoring the activities that are performed for ensuring that proper quality is maintained while performing the project activities. The quality control approaches, which are mainly used for controlling the project quality, are listed below:

• Proper analysis of materials and resources that are used in the project
• By reflecting on various quality control measures for ensuring the project quality is maintained
• Determining the work that is generally undertaken with the help of quality control team.

2.5 Quality improvement approach

 It is found that for improving the project quality, it is very much essential for the project managers to take some steps that are very much helpful in resolving the quality related issues, which are mainly associated with the project (Sanz-Calcedo et al., 2014). The steps that are needed to be followed for improving the quality are listed below:

• Encouraging communication, engagement as well as participation of all the stakeholders of the project which are mainly affected with the help of quality related process
• Implementation of proper improvements steps for quality maintenance of the project

It is identified that by following the steps, which are provided above, the issues related with the project can be resolved and the project manager can be able to improve the quality of the project.

References

Boute, R., Bruggeman, W., & Vereecke, A. (2014). Cost Management in the Supply Chain: an integrated approach. Cost Management, 11-15.

Fayard, D., Lee, L. S., Leitch, R. A., & Kettinger, W. J. (2014). Interorganizational cost management in supply chains: Practices and payoffs. Management accounting quarterly, 15(3), 1-9.

Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper Saddle River, NJ: pearson.

Gopalakrishnan, M., Libby, T., Samuels, J. A., & Swenson, D. (2015). The effect of cost goal specificity and new product development process on cost reduction performance. Accounting, Organizations and Society, 42, 1-11.

Liu, L., Sun, J., Ni, Y., Yang, S., & Song, P. A. (2018). Discussion on cost control experience in construction project management. Smart Construction Research, 2(3).

Molina-Azorín, J. F., Tarí, J. J., Pereira-Moliner, J., López-Gamero, M. D., & Pertusa-Ortega, E. M. (2015). The effects of quality and environmental management on competitive advantage: A mixed methods study in the hotel industry. Tourism Management, 50, 41-54.

O’Neill, P., Sohal, A., & Teng, C. W. (2016). Quality management approaches and their impact on firms? financial performance–An Australian study. International Journal of Production Economics, 171, 381-393.

Sanz-Calcedo, J. G., González, A. G., López, O., Salgado, D. R., Cambero, I., & Herrera, J. M. (2015). Analysis on integrated management of the quality, environment and safety on the industrial projects. Procedia Engineering, 132, 140-145.

Sunil, K., Pathirage, C., & Underwood, J. (2015, June). The importance of integrating cost management with building information modeling (BIM). International Postgraduate Research Conference (IPGRC 2015).

Zeng, J., Phan, C. A., & Matsui, Y. (2015). The impact of hard and soft quality management on quality and innovation performance: An empirical study. International journal of production economics, 162, 216-226.

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