Budgeting

Project Cost Management

Assignment 1

3/5/2012

Qamer Javed

Student id: 16022621

To

Professor Johnson

Curtin University

Subject: Cost Estimation

Dear Sir,

This report represents the summary and estimates of conference which is due on 7th of October. The scope of the conference is to provide the community with the knowledge of the project management. The data required for the estimation was sourced through Supplier quotation and previous data. Different suppliers were contacted using websites and asked for the estimation of the cost that was to be incurred on the conference. After rigorous research and planning some of the organizations were selected for carrying out the conference in a successful manner.

To fully acknowledge the depth of the conference our organization used WORK BREAK DOWN STRUCTURE PROCESS where each process of the conference had to be broken down into smaller unit in order for extensive research on it, According to Turner the most direct method for preparing estimates would be to break the work down to a lower level of detail in the WBS, estimate the cost at that level and then sum back up to achieve an overall cost.

Now as to the conference; we split the conference into smaller phases and contracted it out to different organizations. We focused on the following details:

1) Production Phase

* Stage and backdrop

* Sound and technician

* Decoration and Entertainment

2) Catering Phase

* Food

* Conference hall

* Waiters

* Cleaning staff

3) Advertising Phase

* Pamphlets and Print media

* Local Radio

4) Transportation Phase

5) Accommodation Phase

Breaking down the conference into different phases helped in the process of accurate cost estimation. Tasks were assigned to different personal in my organization to approach the companies which were experts in different fields and then their companies were asked to submit their quotations so that the final table of...