QUESTION $2$

$[15$ MARKS$]$

Consider the following work breakdown structure $($WBS$)$ compiled for Transport project ABC for period $1.$ The WBS for period $2$ requires revision and several updates are to be effected. Answer only the questions considering the WBS given for Transport project ABC incorporating the updates for period $2.$

Revised updates to be considered for the WBS for Transport project ABC for period $2(1$ November $2023-31$ March $2024)$:

a$)$ Due to conditions, the cost for general labour resources is revised because less general labour is needed, and therefore a cut of $5\%$ in this costing item is required.

b$)$ A fire resulted in the project facilities no longer being available $-$ a new facility has been identified but at a higher monthly rate than the previous building. An increase of $12\mathrm{.}5\%$ needs to be incorporated.

c$)$ Due to economic conditions and the financial pressures on the stakeholders, the professional project staff accepted a $4\%$ cut in their fee structure.

d$)$ The technical resources needed are far less than anticipated, bringing about an overall cut on this cost item of $15\%.$

e$)$ New specifications on transportation required demand an increase of $6\%$ on this cost item.

f$)$ Due to maintenance problems at Eskom and continuous increases in energy rates, the energy resources item is revised with an increase of $18\%.$

g$)$ Excellent new software is now available, which can enhance the quality of work done on the project $-$ it has a cost implication of an additional $7\mathrm{.}5\%.$

h$)$ Fendi noted that due to a liquidation sale, his team was able to obtain materials at a much lower price than anticipated $-$ this brings about a $20\%$ cut in the costing of materials resources.

i$)$ Due to damage, hardware support needs additional funding to make new computers available to technicians working on the project $-$ this results in a $10\%$ increase of this costing item.