Resource and Time Budgets
You are going to be the project manager for the construction of a large warehouse for a major international company. Of course, there are many elements involved in constructing such a large facility, but this assignment will consider only one, the laying of the facility’s foundation (which is obviously preceded by site preparation and followed by the actual construction of the building).
In preparation for completing of this element of the project—laying the facility foundation—complete the following:
- Locate a source of data for the hourly wages that will need to be paid to those who will pour and finish the concrete foundation (the Bureau of Labor Statistics of the United States government is a good source for such information). Be sure to document the source of your hourly wage data for such concrete workers.
- Locate a source of data for the cost of a cubic yard of reinforced concrete. Be sure to document the source of your reinforced concrete cost data.
- Assuming that eight workers will be needed for the completion of the project, that they will work five days per week for 10 hours per day, and that it will take them three full weeks to complete the pouring of the foundation, what is your estimate (based on the hourly wage data that you located) of the labor expense of pouring the foundation?
- Assuming that the foundation will require 400 cubic yards of concrete, what is your estimate (based on the hourly wage data that you located) of the cost of the materials needed for pouring the foundation?
- How would “Overhead charges” (review the Budgeting chapter if you do not remember learning about this term) impact the two estimates that you have calculated?
- How would an increase in the cost of steel (one of the components of reinforced concrete) impact the budget that you had developed?
- If the construction site was impacted by a hurricane during the preparation of the foundation (meaning that work had to be temporarily stopped), how would the overall schedule of the construction project be impacted?
- Provide your answers in a 3- to 4-page Microsoft Word document, using APA style.
- Support your responses with examples and research.
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MGT3035 Fundamentals of Project Management
© 2013 South University
The EVM is a sophisticated technique that attempts to measure all parameters, especially cost
and schedule of the triple constraint, in one set of metrics. Thus, the EVM tries to improve upon
the limitations inherent in measuring the scheduled progress or the budget in isolation.
For example, it is possible to be within the budget at a particular point in time but not on schedule
in making advancements in technology. In such a case, the project may greatly exceed the
overall budget at its completion, as by the time the project has caught up with making the
technological improvements, the expended funds could far exceed the overall budget. The EVM
links cost and time management in one set of numbers.
The EVM is generally not worth the effort (necessary for large data collection) for small, low-
visibility projects. However, it becomes popular when managing large, high-visibility projects with
powerful external stakeholders requiring accurate, periodic reporting.