Unit 4 – Individual Project
You are now ready to apply costing methods, tools, and techniques to your project. There are many of these available to assist you in determining your overall budget, as well as to estimate the durations for individual tasks. These methods could include the following:
Expert judgment
Analogous estimating
Parametric estimating
Bottom-up estimating
Three-point estimating
Reserve analysis
Cost of quality
Project management estimating software
Vendor bid analysis
You will be responsible for using your plan that you developed in Weeks 2 and 3 to estimate your budget for your Key Assignment project. You should apply 2 of the above methods to determine a worst-case scenario budget. Please put your calculations in a spreadsheet similar to the following:
Assignment Deliverables
You will use the template provided in Unit 1 to complete the Costing Methods and Tools section, as follows:
Costing Methods and Tools
Select 2 of the costing methods, and discuss why they will support developing a realistic budget.
Provide an example of computations for a few of the activities for the two selected methods.
Fill in a table similar to the example table above so that your two different total project budgets are based on the two selected methods.
Discuss what type of contingency budget you will put in place based on the two budgets to mitigate an underestimation.
Attached are the project template, previous projects, and the example spreadsheet. Please review the previous projects for consistency throughout the project. The example project used for the assignments is building a house.
