PROJECT MANAGEMENT ARENA PROJECT
Assignment Task Two Budgets and Cost Planning
Using the data in the scenario, prepare a fully itemised cost plan for the project to include the provision of contingencies.
Determine a basis for the provision of contingency within the cost plan (for example, adopting a flat rate for the entire project or risk-related rates for different elements or phases). Make a clear recommendation, stating your reasoning.
10 marks
Using the cash flow data, prepare an initial project appraisal and identify the Payback Period; Return on Capital (RoC); and Net Present Value of the project to support a business case for presentation to the client’s Board. Use a discount rate of 4% per annum.
With the main contractor having left site, additional site management resources will be required to co-ordinate and control the fit-out works for each retail and food unit as well as specialist equipment to be installed in hospitality areas, the TV Studio and Media Centre.
Prepare a resource budget for the assistant project managers and administration assistant (assume that no additional office accommodation is required).
Develop a week-by-week resource histogram (column chart) showing the number of assistant project managers required.
Analyse this data and, using the PERT technique, assess the probability of the arena construction works being completed before the end of December 2023.
What conclusions do you make as a result of your findings?
10 marks
Using the Earned Value approach determine the following:
Calculate the estimated cost of the arena construction at completion.
Calculate the estimated total duration of the arena construction and identify the estimated completion date.
Analyse this information with respect to the project plan you prepared in response to task one and prepare a “traffic light” progress report indicating the status of each task on the following basis:
Red Stage in progress falling more than 5% behind plan
Amber Stage in progress (broadly in line with plan) or not yet started
Green Stage completed or at least 5% ahead of plan
What conclusions do you draw?
10 marks
