Unit $5-$ Learning Activity

Developing Cost Estimates and Constructing a Project Budget

Due no later than $11$:$00$ PM EST Sunday of Unit $5$ or as directed by the professor

Value: $3\%$ of final grade

This learning activity is to get the students engaged in the basic knowledge of cost estimation in both physical and human resources that are involved in project delivery. Accordingly, it involves understanding the component cost used to compensate for material and tools usage in activities and the hourly compensation of labor or the portion of salary of a resource due for an activity. This brings the duration of the activity cost and the material spent at that time together. These are for the lowest level WBS$,$ or work packages estimate that are rolled up$.$ It also tests the students knowledge of $3$ basic estimating methods. The necessary contingency reserves are added to create a cost baseline that will be a basis for monitoring and controlling the project budget at any point in time. Besides the risks directly associated with the activities that gave rise to contingency reserves, the unknown unknowns are provided a management reserve. The students are expected to demonstrate this knowledge during their presentations.

Activity

Using their Team Projects as a base, students will:

map the budget to their activities on the WBS and roll up to the Cost baseline using the estimating methods discussed in the class, and

explain the step$-$by$-$step process with figures.