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    Percipio Course Creating A Project Schedule and Budget

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    Balaji
    There are three main methods for estimating project costs and durations: analogous estimating uses previous similar projects, parametric estimating uses variables to scale estimates, and bottom-up estimating divides the project into activities to estimate totals. A project network diagram maps the flow of activities and critical path. A schedule adds start/finish dates, and a budget adds contingency reserves to activity estimates. An example provides a cost breakdown for a construction project with individual activity estimates totaling $211,050.

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    Percipio Course Creating A Project Schedule and Budget

    Uploaded by

    Balaji
    34 views3 pages
    There are three main methods for estimating project costs and durations: analogous estimating uses previous similar projects, parametric estimating uses variables to scale estimates, and bottom-up estimating divides the project into activities to estimate totals. A project network diagram maps the flow of activities and critical path. A schedule adds start/finish dates, and a budget adds contingency reserves to activity estimates. An example provides a cost breakdown for a construction project with individual activity estimates totaling $211,050.

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    Percipio Course Creating a Project Schedule and Budget

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    Percipio Course Creating a Project Schedule and Budget

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    There are three main methods for estimating project costs and durations: analogous estimating uses previous similar projects, parametric estimating uses variables to scale estimates, and bottom-up estimating divides the project into activities to estimate totals. A project network diagram maps the flow of activities and critical path. A schedule adds start/finish dates, and a budget adds contingency reserves to activity estimates. An example provides a cost breakdown for a construction project with individual activity estimates totaling $211,050.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    34 views3 pages

    Percipio Course Creating A Project Schedule and Budget

    Uploaded by

    Balaji
    There are three main methods for estimating project costs and durations: analogous estimating uses previous similar projects, parametric estimating uses variables to scale estimates, and bottom-up estimating divides the project into activities to estimate totals. A project network diagram maps the flow of activities and critical path. A schedule adds start/finish dates, and a budget adds contingency reserves to activity estimates. An example provides a cost breakdown for a construction project with individual activity estimates totaling $211,050.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    4/1/22, 4:01 PM HTML Resource

    Job Aid: Estimating Project Costs and Durations


    There are three main methods for estimating project costs and timeframe: analogous estimating, parametric estimating, and bottom-up estimating.

    Method type Description Advantages Disadvantages

    Analogous estimating Use estimates from a Quick and easy to carry out. Small differences between
    previous, similar project as the projects being compared
    the basis for your current may result in inaccurate
    one. estimates.

    Parametric estimating Use similar, repeatable More accurate than Changing one variable will
    variables to estimate the analogous estimating. impact others.
    project duration or cost.
    Once you know precisely the
    duration or cost of one
    variable, then scale it up for
    the project as a whole.

    Bottom-up estimating Divide the project into small, The most accurate method; Very time-consuming to
    manageable activities or useful for larger or more carry out.
    deliverables. Then create an complex projects.
    estimate for each activity or
    deliverable and add up all
    the individual estimates to
    get your total project
    estimate.

    Once you’ve estimated the duration for each project task or deliverable, determine the flow of activities using a project network diagram. Then enter the durations beside each
    task and add up the durations in each path. The path with the highest total duration is the critical path, which is also the total length of the project.

    Next, create your schedule. Start by adding start and finish dates for each activity, and add the project start date to the first activity. You then have two options. You can either
    use a calendar to figure out what task should be completed on each succeeding date or use project management software that will automatically fill in each subsequent task’s
    start and finish date.

    https://welearnwelspun.percipio.com/courses/7a08273c-df3e-46a0-affa-29f77fe867d0/videos/5f3b2f0d-0923-454c-898b-25b014b52ccc 1/3
    4/1/22, 4:01 PM HTML Resource

    To get your project budget, calculate a contingency reserve for each task. Add the contingency reserve to the original estimate to get a total for each task. Finally, aggregate all
    work activity totals to calculate the total project budget.

    Example
    Here's an example of a cost breakdown for a project to build of a new equipment storage site for a construction firm. The project must be completed in 20 weeks; the due date
    that has been established is August 6.

    Cost baseline for new factory build project

    Work activity Start date Cost Contingency Total


    reserves

    Request bids from March 21 $3,000 $150 $3,150


    contractors

    Complete contract April 1 $1,000 $50 $1,050

    Consents April 7 $10,000 $500 $10,500

    Preliminary design April 14 $4,000 $200 $4,200

    Construction design April 19 $8,000 $400 $8,400

    Foundation July 27 $35,000 $1,750 $36,750

    Walls and roof August 2 $90,000 $4,500 $94,500

    https://welearnwelspun.percipio.com/courses/7a08273c-df3e-46a0-affa-29f77fe867d0/videos/5f3b2f0d-0923-454c-898b-25b014b52ccc 2/3
    4/1/22, 4:01 PM HTML Resource

    Work activity Start date Cost Contingency Total


    reserves

    Internal August 4 $50,000 $2,500 $52,500


    construction

    Total cost   $201,000 $10,050 $211,050

    https://welearnwelspun.percipio.com/courses/7a08273c-df3e-46a0-affa-29f77fe867d0/videos/5f3b2f0d-0923-454c-898b-25b014b52ccc 3/3

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