For this assessment, you will estimate the costs of the project you selected in Assessment 1. Your project cost estimate is to include all necessary supporting documentation, such as constraints, dependencies, and assumptions.
Note: In this course, you will develop a project plan by completing a different component of the plan for each assessment. Therefore, you will need to complete the assessments in the order in which they are presented.
Estimating project budgets is far from an exact science. Many of us have heard of projects running over budget. Why is this? Why do we consistently forecast low? There are many reasons for this, from improper funding at the beginning of the project to cutting corners that should never have been cut. Whatever the reason, there is a need for project managers and their teams to become better at forecasting cost.
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
Project Budgeting Methods
There is no hard rule for project budgeting, but there are tools that you can use to aid you in setting up a project budget. Meredith and Mantel (2012) outline top-down and bottom-up budgeting. You will probably find that one fits your needs and your project better than the other.
Plan for the Unexpected
In our personal finances, we budget for the expected and the unexpected. We can apply the same idea to the cost estimates for projects. Continuously ask yourself how you will respond to unforeseen costs or delays. In other words, how can you plan for the unexpected?
Meredith, J. R., & Mantel, S. J. (2012). Project management: A managerial approach (8th ed.). Indianapolis, IN: Wiley.
Questions to Consider
To deepen your understanding, you are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of the business community.
You have developed the project schedule and are working on your cost estimate. Consider how you use the project schedule to help develop the cost estimate. Consider your own project for the following questions:
The following resources are required to complete the assessment.
Click the links provided to view the following resources:
The following optional resources are provided to support you in completing the assessment or to provide a helpful context. For additional resources, refer to the Research Resources and Supplemental Resources in the left navigation menu of your courseroom.
Click the link provided below to view the following multimedia piece:
The following e-book is linked directly in this course:
Access the following resources by clicking the links provided. Please note that URLs change frequently. Permissions for the following links have been either granted or deemed appropriate for educational use at the time of course publication.
The resources listed below are relevant to the topics and assessments in this course and are not required. Unless noted otherwise, these materials are available for purchase. When searching the bookstore, be sure to look for the Course ID with the specific –FP (FlexPath) course designation.
Additional Book Resources
You may wish to purchase the optional resources below from your preferred vendor:
Note: In this course, complete the assessments in the order in which they are presented.
For this assessment, estimate your project costs for the project you selected in Assessment 1, using an Excel spreadsheet. For tutorials on using Microsoft Excel, refer to the Computer Skills section under the Supplemental Resources link in the left navigation menu of the courseroom.
Be sure to use the following resources as you complete your assessment:
Use the Cost Estimate Template (linked in the Resources under the Required Resources heading), which is a simple Excel spreadsheet, to estimate your project costs. Be sure to include all necessary supporting documentation, such as constraints, dependencies, and assumptions.
Complete the following:
Submit your project cost estimate as an Excel file.
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