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-
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Project Task
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Duration
in Hours
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Resource
Cost/Hour
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Cost Method 1
(Three-Pt
Estimate)
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Cost 'Method 2
(Reserve Analysis)
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Task 1
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8
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$50
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CIVI=5500 CO=$400
CP=$700
Estimate = $517
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$400 + 25% = $500
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Task 2
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Task 3
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Task 4
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TOTALS
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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 2 selected methods.
Fill in a table similar to the example table so that your 2 different total project budgets are based on the 2 selected methods.
Discuss what type of contingency budget you will put in place based on the 2 budgets to mitigate an underestimation.