Project Budgets

Keller Graduate School of Management

PROJ 586: Project Management Systems

Professor : Ezam Muhammad

August 4, 2013

Course Project:

Project Budget

Team C

What is the total budget for this project?

The total budget set for Empire Island Convention Center is $300,000

Variable Costs are at the following

Utilities:

Electrical $3,500 -$6,000

Gas $4,500 - $7,200

Labor:

Hourly Workers (Wages) $10,000 – 15,000

Commissions:

Sales Department $2,000 - $10,000

Materials:

Brochures $450 - $600

Delivery Costs  $1,500 - 2,800

Food Services $25,000 - $50,000

Miscellaneous materials:  

Building Materials  (Raw) $30,000 - $100,000

Fixed Costs set at the following:

Advertisement  $1,600

Phone bill $5,400

Salaries ( Executive and Non-Executive) $60,000

Insurance $7,800

Accounting Services (external) $3,500

Property taxes $5,650

Does this budget make sense?

Empire Island Convention Center budget is determined by work performed. Our services are based on a case-by-case basis. Each criterion is set by the customer’s specifications. Our performance is done by work resources and often requires material resources that are allocated against each project. Our costs calculated three ways. The first is the cost of a work resource based on the amount of time that the resource spends working on each client. Rate based materials costs are resources such as convention materials or supplies (which are assigned standard rates)

Fixed costs are the total cost that represents the price for doing specific tasks (conventions) regardless of the number of resources assigned, the number of hours worked or the amount of materials used.

Per use Costs (Variable Costs) are the single amounts that it costs each time we use specific resources.

What can be done to lower the budget and reduce the project’s duration?

There are many things that we, Empire Island Convention Center, can do to lower costs to help bring the bar of the budget...