GMS 450 Lecture Notes - Lecture 5: Work Breakdown Structure, Observational Error, Project Risk Management
9 Dec 2015
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Methods of budgeting: budgeting is, forecasting what resources the project will require, what quantities of each will be needed, when they will be needed, how much they will cost, Budget and schedule work hand in hand: most businesses employ experienced estimators who can forecast resource, budgeting a project is more difficult than budgeting more routine activities usage very well. Budgeting problem: project are unique activities, no history to aid estimators, projects may be multi-year with cost escalations, changes in technology, materials, prices, how overhead and indirect costs are charged. Give a range, or say too early to: ,000, ,000, ,000 tell, we"ll get back to you, etc. ,000 to ,000: bottom up: example, the detail working drawings are now done and you are preparing the detail estimates. You have contacted the suppliers and have the following prices: sub trader, material, general labour. Total: ,000 (= sum of cost, oh, and profit)
