What is a project?

Before we delve into project time management, maybe we should take a moment to define what
a project is. A project has a single objective that must be accomplished through the completion
of tasks that are unique and interrelated Projects are completed through the deployment of
resources

Projects have scopes, schedules, and costs and are accomplished within specific deadlines,
budgets, and according to specificationAnd to summarise, a project is a sequence of unique,
complex, and connected activities having one goal or purpose and that must be completed by a
specific time, within budget, and according to specifications.

Project Cost Management

The determination of project costs is the foundation framework for project manager to expend
resources. The management of cost means determining the budget, estimating cost, allocating
budget (resources) to individual activities and controlling the established cost baseline.

The following diagram illustrates the interrelated relationships between time, scope and cost.

Determine project costs

The determination of project costs includes three processes

1.Resource Planning
A resource is anything needed to complete work activities, a project phase or the overall project.
This includes:

1. Human resources – people.

2. Equipment – Machinery, tools etc.

Materials – any material needed to complete work activities. · Other resources – licences,
training, space, permits etc.The first step to determine project costs is to identify the resources
needed for the completion of individual work activities, including quantities.Mistakes made in
this step will carry over to the following phases of cost determination (cost estimate and
budgeting).

2. Cost estimating

In this process we estimate the cost of the resources identified and quantified in the previous
step. So at the end of this step we would know

3. What is needed to complete work activities and;

4. How much it would cost to complete project activities.

These estimates are approximate and may refer to work packages. A work package is a bundle of
activities contributing to a one deliverable. Following the example of the classroom project
(above), WALLS could be a work package, whereas the work activities that are included in it
could be:

5. Scraping walls and prepare them for painting

6. Paint walls

7. Hang pictures

3. Cost budgeting

Here we allocate cost (based on the estimates made in the previous step) to individual work
activities. When doing so, bear in mind two things: It is now the time to be specific and
accurate This step sets the ground for the cost baseline which performance will be measured
against.These processes build on each other and are often regarded as one process.