Assessment 4

Project Scheduling and Budgeting

Executive Summary
The main aim of this project is to develop a plan for project scope by framing up the project
schedule, project cost and quality management. Project cost management is the systematic
method of planning, controlling and tracking the allocated budget effectively. It usually defines
the associated costs required for individual deliverables of the project. Project schedule
management is the process of developing and establishing the project schedule. Project quality
management involves the quality control plan to be implemented during the course of project to
track the project quality during contracting, procurement and completion of the construction. The
below sections details the project planning for WRCF residential care facility construction.
Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Project Scope...................................................................................................................................4
Description of estimation methods for planning and budgeting......................................................4
Tools and Techniques for managing budget and planning..............................................................4
Scheduling tools...........................................................................................................................4
Budgeting tools............................................................................................................................5
Overview of scheduling and cost estimation method......................................................................5
Project Schedule..............................................................................................................................8
Gantt chart.......................................................................................................................................9
Cost Baseline.................................................................................................................................10
Project Budget...............................................................................................................................14
Cost control methods.................................................................................................................15
Quality management plan..............................................................................................................15
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
Introduction
Project schedule management, cost management as well as quality management are the crucial
part of project scope planning. More than 90% of project risks can be alleviated through proper
planning (Morris and Sember, 2008). The project scope definition aids the business requirements
more clear and concise for the project team and manager. According to Larsen and Gray (2013),
project management essentially controls and manages the cost, scheduling and work hours or
days spent on each task. Based on the popular saying, “its quality over quantity”, while managers
always whip out the staffs like horses to move rapidly.

Project Scope
The chief scope of this project is to develop cost and schedule management plan for the
construction of Waratah Residential Care Facility (WRCF). The plan aims at constructing 150 –
300 facilities and to be opened by May 2023. The estimated project cost is $9,275,000.

Description of estimation methods for planning and budgeting

Project cost management is the process of planning, controlling and tracking the allocated budget
effectively. It usually defines the associated costs required for individual deliverables of the
project. Project schedule management is the process of developing and establishing the project
schedule (Bourne and Walker, 2004). The commonly used estimation methods for project cost
and schedule are work breakdown structure, detailed baseline schedule, allocation of resources
and identification of risks (Kenneth, 2005). The cost estimation involves the calculation of
activity cost measures, scope baselines, resource calendars, cost performance baseline and
project funding requirements. Project budgeting is aligned parallel with scheduling and highly
dependent on task duration, allocated resources and cost estimation of individual activities.
(Krezner, 2014)
Tools and Techniques for managing budget and planning
Scheduling tools
The tools and techniques used for project scheduling are Gantt chart, Network diagram, Critical
Path method and PERT method. Gantt chart involves the timeline of the project schedule plotted
for each activity as a horizontal bar. Depending on the task dependencies and resources
allocated, the bar may be parallel or sequential. The Start and End date of the project can be
determined using this method. Network diagram is the display of tasks in the order right from
initial planning to final task to ensure whether the project is on track. The critical path method is
the sequential string of activities that has longest duration in the project schedule that could
possibly delay the project. (Saputra and Ladamay, 2011)The critical path method (CPM)
determines by summing up the duration of all activities on the critical path. It determines the
longest and shortest duration of the project. PERT chart generally predict the risk far better. For
each activity, three estimates of time are obtained: the shortest time (SP), the longest time (LT)
and the most likely time (MT). The estimate assigned for the activity is a weighted average of
these three estimates. The formula used for calculating the Expected Time, Expected time = (SP
+ 4(MT) + LT) /6. (Krezner, 2014)

Budgeting tools
The commonly employed cost estimation methods are analogous, parametric and three point
estimation. Analogous estimation involves the use of past data to predict the cost of the project.
The disadvantage of this method is low accuracy rates. Parametric estimating involves the
statistical modelling to estimate the project costs (Atkinson, 2015). Three point estimation is the
method by estimating optimistic (O), most likely (M) and pessimistic (P). Three point cost
estimate E = (Optimistic+ More likely +Pessimistic)/3. Top down and bottom up cost estimation
is two other commonly used methods for the project budgeting. Top down involves the summing
up of individual costs and totaling up whereas bottom up estimating is the summing up of total
cost of all activities. (PMI, 2015)

Overview of scheduling and cost estimation method

This project employed Gantt chart, Network diagram, Critical path method are used for project
scheduling which is depicted below. Three point cost estimation is performed to estimate the
project budget.
Network Diagram using critical path method
Project Schedule
Task Duratio Start Finish Predecessor
n
Operational Implementation Plan 177d Fri 4/1/22 Tue 12/6/22
Develop Management/Organization structure 0d Fri 4/1/22 Fri 4/1/22
Recruit & hire Executive Director 30d Fri 4/1/22 Fri 5/13/22 2
"Interior design issues decided (furnishings, etc.)" 1.4w Fri 5/13/22 Tue 5/24/22 3
Determine what was provided with lease and what was furnished in some 20d Tue 5/24/22 Tue 6/21/22 4
units
Determine budget for interior 2w Tue 6/21/22 Tue 7/5/22 "4,5"
Carpet and wall finish determined 10d Tue 7/5/22 Tue 7/19/22 6
Furniture and room layout 2w Tue 7/5/22 Tue 7/19/22 6
Facility and equipment need defined 2w Tue 7/19/22 Tue 8/2/22 8
Staffing determined 4w Fri 5/13/22 Fri 6/10/22 3
Identify office space for staff 2w Tue 7/19/22 Tue 8/2/22 8
Director appointed 4w Tue 8/2/22 Tue 8/30/22 11
Services planning 4w Fri 5/13/22 Fri 6/10/22 3
Service programs selected 45d Tue 8/30/22 Tue 11/1/22 12
Service staffing needs determined 8w Tue 8/30/22 Tue 10/25/22 "10,12"
Additional equipment needs 4w Tue 11/1/22 Tue 11/29/22 14
Telecommunications services 4w Tue 8/2/22 Tue 8/30/22 9
Investigate phone service options 45d Tue 8/2/22 Tue 10/4/22 9
Certification/Accreditation requirements 45d Tue 8/30/22 Tue 11/1/22 12
Approve requirements & timing of applicants 42d Tue 10/4/22 Thu 12/1/22 18
Develop operational quality monitoring systems 0d Tue 8/2/22 Tue 8/2/22 9
"Develop financial systems (billing, etc.)" 30d Tue 8/2/22 Tue 9/13/22 9
Workforce planning 6w Fri 5/13/22 Fri 6/24/22 3
Workforce management recommendations 60d Tue 9/13/22 Tue 12/6/22 22
Project plan for recruitment developed 6w Fri 6/24/22 Fri 8/5/22 23
Policies and procedures developed 2w Fri 5/13/22 Fri 5/27/22 3
Obtain ‘samples’ of residential care policies& procedures from other 45d Fri 8/5/22 Fri 10/7/22 25
institutions
Investigate facility laws proposed in other states/federal 4w Fri 5/27/22 Fri 6/24/22 26
Technology & information systems identified 10w Fri 5/13/22 Fri 7/22/22 3
"Develop plan for technology access for residents (TV, Cable, PC ’s)" 15d Fri 6/24/22 Fri 7/15/22 28
 Purchase and install software applications for residents 3w Fri 7/22/22 Fri 8/12/22 29
Legal and Licensing Requirements 313d Thu 4/28/22 Tue 7/11/23
Research licensing requirements for residential care facility 0d Thu 4/28/22 Thu 4/28/22
Uniform accessibility standard compliance 38d Thu 4/28/22 Tue 6/21/22 33
Investigate law firm and outline services 2w Thu 4/28/22 Thu 5/12/22 33
Prepare project plan for license 4w Thu 5/12/22 Thu 6/9/22 35
File license-by opening date 2w Thu 6/9/22 Thu 6/23/22 36
Curb-cut approval from county (facility access) 0d Thu 4/28/22 Thu 4/28/22 33
Investigate corporate structure for the residential care facility 53d Thu 5/12/22 Tue 7/26/22 35
Determine Board of Trustee membership 115d Tue 7/26/22 Tue 1/3/23 39
Appoint Board of Trustees 3w Tue 1/3/23 Tue 1/24/23 40
Prepare draft Code of Regulation 4w Tue 1/24/23 Tue 2/21/23 41
Prepare document and filing of governance structure 4w Tue 2/21/23 Tue 3/21/23 42
Draft service agreement with for services provided 12w Tue 3/21/23 Tue 6/13/23 43
Lease issued 4w Tue 6/13/23 Tue 7/11/23 44
Research Long Term Care insurance requirements 110d Thu 4/28/22 Thu 9/29/22
"Facility “rules” defined (i.e., smoking, firearms, pets, financial planning)" 12w Thu 9/29/22 Thu 12/22/22 46
Determine changes for residents in occupancy conditions 4w Thu 9/29/22 Thu 10/27/22 46
Lease template prepared 6w Thu 12/22/22 Thu 2/2/23 "46,47,48"
Review all marketing materials for compliance 6w Fri 7/8/22 Fri 8/19/22 62
Marketing 657d? Thu 4/28/22 Mon 11/4/24
Community mailing about construction project 1d? Thu 4/28/22 Fri 4/29/22
Marketing tasks preparation 30d Thu 4/28/22 Thu 6/9/22
Facility volunteers meeting 16d Fri 4/29/22 Mon 5/23/22 52
Community groups meeting 1d Thu 6/9/22 Fri 6/10/22 53
Facility staff (all shifts) meeting 4d Thu 6/9/22 Wed 6/15/22 53
Presentation prepared for Speaker’s Bureau 3d Thu 6/9/22 Tue 6/14/22 53
Provide updates to community 2d Thu 6/9/22 Mon 6/13/22 53
Ground breaking ceremony 0d Fri 6/10/22 Fri 6/10/22 55
PR firm contracted 10d Thu 6/9/22 Thu 6/23/22 53
Marketing plan developed 1d Thu 6/9/22 Fri 6/10/22 53
Determine name and signage for facility 8 wks Thu 4/28/22 Thu 6/23/22
Hire marketing director 0 days Thu 4/28/22 Thu 4/28/22
Marketing plan approval 4 wks Thu 4/28/22 Thu 5/26/22 63
Implementation of marketing plan 5 months before the facility ready 0 days Fri 11/1/24 Fri 11/1/24 "64,71"
Construction & Furnishing 473 days Tue 1/24/23 Fri 11/15/24
Phase 1 - Foundation & Excavation (Basement/1st floor slab) 0 days Tue 1/24/23 Tue 1/24/23 "38,41"
Phase 2 - Structure (steel/framing) 95 days Tue 1/24/23 Tue 6/6/23 67
Phase 3 - Enclosure (masonry/windows/roof) 113 days Tue 6/6/23 Fri 11/10/23 68
Phase 4 - Interiors (drywall/ceiling/flooring/case goods) 134 days Tue 6/6/23 Mon 68
12/11/23
First 50 apartments readiness to prepare for occupancy 234 days Mon Fri 11/1/24 70
12/11/23
First 50 apartments ready for residents 10 days Fri 11/1/24 Fri 11/15/24 71
Remaining 100 units readiness to prepare for occupancy 8 wks Mon Mon 2/5/24 70
12/11/23
Construction complete 10 days Mon 2/5/24 Mon 2/19/24 73
Building ready for residents 0 days Mon 2/19/24 Mon 2/19/24 74

The project commences on April 1st, 2022 and estimated to end by Feb 19th 2024. This is due to
the 30% delay on critical tasks belonged to the construction phase. The work timings of this
project is 9 AM to 5 PM. The work days comprises of five days a week. The total work hours is
40 hours per week.
 Gan
tt

chart
Cost Baseline

Durati Budget% Allocated

ID Task Name on Predecessors allocated Cost budget
1 Operational Implementation Plan         $500,000
30
1.1 Develop Management/Organization structure days   0 0  
1.4
1.2 Recruit & hire Executive Director wks 1.1 3% $15,000  
20
1.3 Interior design issues decided (furnishings, etc.) days 1.2 8% $40,000  
Determine what was provided with lease and what was
1.4 furnished in some units 2 wks 1.3 8% $40,000  
10
1.5 Determine budget for interior days 1.3,1.4 8% $40,000  
1.6 Carpet and wall finish determined 2 wks 1.5 8% $40,000  
1.7 Furniture and room layout 2 wks 1.5 8% $40,000  
1.8 Facility and equipment need defined 4 wks 1.7 8% $40,000  
1.9 Staffing determined 2 wks 1.2 2% $10,000  
1.1
0 Identify office space for staff 4 wks 1.7 2% $10,000  
1.1
1 Director appointed 4 wks 1.9 0 0  
1.1 45
2 Services planning days 1.2 4% $20,000  
1.1
3 Service programs selected 8 wks 1.12 4% $20,000  
1.1
4 Service staffing needs determined 4 wks 1.9,1.12 4% $20,000  
1.1 1.13FS (3wks
5 Additional equipment needs 4 wks before) 13% $65,000  
1.1 45
6 Telecommunications services days 1.8 17% $85,000  
1.1 45
7 Investigate phone service options days 1.8 0 0  
1.1 42
8 Certification/Accreditation requirements days 1.11 0 0  
1.1
9 Approve requirements & timing of applicants 0 days 1.18 0 0  
1.2 30
0 Develop operational quality monitoring systems days 1.8 12% $60,000  
Develop financial systems (billing, etc.) 6 wks 1.8 4% $20,000  
1.2
 1
1.2 60
2 Workforce planning days 1.2 3% $15,000  
1.2
3 Workforce management recommendations 6 wks 1.22 3% $15,000  
1.2
4 Project plan for recruitment developed 2 wks 1.23 3% $15,000  
1.2 45
5 Policies and procedures developed days 1.2 2% $10,000  
1.2 Obtain ‘samples’ of residential care policies& procedures
6 from other institutions 4 wks 1.25 2% $10,000  
1.2 10
7 Investigate facility laws proposed in other states/federal wks 1.26 0 0  
1.2 15
8 Technology & information systems identified days 1.2 7% $35,000  
1.2 Develop plan for technology access for residents (TV,
9 Cable, PC ’s) 3 wks 1.28 0 0  
1.3 12
0 Purchase and install software applications for residents wks 1.29 25% $125,000  
2 Legal and Licensing Requirements         $150,000
Research licensing requirements for residential care 38 $
2.1 facility days   7% 10,500  
$
2.2 Uniform accessibility standard compliance 2 wks 2.1 5% 7,500  
$
2.3 Investigate law firm and outline services 4 wks 2.1 7% 10,500  
$
2.4 Prepare project plan for license 2 wks 2.3 12% 18,000  
$
2.5 File license-by opening date 0 days 2.4 0 -  
53 $
2.6 Curb-cut approval from county (facility access) days 2.1 15% 22,500  
Investigate corporate structure for the residential care 115 $
2.7 facility days 2.3 0 -  
$
2.8 Determine Board of Trustee membership 3 wks 2.7 0 -  
$
2.9 Appoint Board of Trustees 4 wks 2.8 0 -  
2.1 $
0 Prepare draft Code of Regulation 4 wks 2.9 3% 4,500  
2.1 12 $
1 Prepare document and filing of governance structure wks 2.10 15% 22,500  
2.1 $
2 Draft service agreement with for services provided 4 wks 2.11 15% 22,500  
2.1 110 $
Lease issued 2.12 15%  
3 days 22,500
2.1 12 $
4 Research Long Term Care insurance requirements wks 2.14 20% 30,000  
2.1 Facility “rules” defined (i.e., smoking, firearms, pets, $
5 financial planning) 4 wks   8% 12,000  
2.1 $
6 Determine changes for residents in occupancy conditions 6 wks 2.14 0 -  
2.1 $
7 Lease template prepared 6 wks 2.14,2.15,2.16 0 -  
2.1 10 $
8 Review all marketing materials for compliance days 3.11 8% 12,000  
3.0 Marketing         $125,000
30 $
3.1 Community mailing about construction project days - 5% 6,250  
16 3.1SS (15 days $
3.2 Marketing tasks preparation days after) 20% 25,000  
$
3.3 Facility volunteers meeting 1 day 3.2 10% 12,500  
$
3.4 Community groups meeting 4 days 3.2 10% 12,500  
$
3.5 Facility staff (all shifts) meeting 3 days 3.2 10% 12,500  
$
3.6 Presentation prepared for Speaker’s Bureau 2 days 3.2 3% 3,750  
$
3.7 Provide updates to community 0 days 3.4   -  
10 $
3.8 Inquiry log established days 3.2   -  
$
3.9 Ground breaking ceremony 1 days 3.2 10% 12,500  
3.1 $
0 PR firm contracted 4 wks 3.2   -  
3.1 $
1 Marketing plan developed 8 wks 3.10 7% 8,750  
3.1 $
2 Determine name and signage for facility 0 days 3.11   -  
3.1 $
3 Hire marketing director 4 wks 3.11   -  
3.1 $
4 Marketing plan approval 0 days 3.11, 3.13   -  
3.1 Implementation of marketing plan 5 months before the 20 $
5 facility ready wks 3.14, 4.5 SS 45% 56,250  
4 Construction & Furnishing         $8,500,000
$
Phase 1 - Foundation & Excavation (Basement/1st floor 95 1,700,00
4.1 slab) days 2.6, 2.9 20% 0  
4.2 Phase 2 - Structure (steel/framing) 113 4.1 FS[28 days 28% $  
 2,380,00
days after] 0
$
134 1,020,00
4.3 Phase 3 - Enclosure (masonry/windows/roof) days 4.2 12% 0  
$
234 4.2 SS[1 wk 3,400,00
4.4 Phase 4 - Interiors (drywall/ceiling/flooring/case goods) days after] 40% 0  
10 4.4 FS[1 wk $
4.5 First 50 apartments readiness to prepare for occupancy days after]   -  
$
4.6 First 50 apartments ready for residents 8 wks 4.5   -  
10 $
4.7 Remaining 100 units readiness to prepare for occupancy days 4.4   -  
$
4.8 Construction complete 0 days 4.7   -  
$
4.9 Building ready for residents 8 wks 4.8   -  

Project Budget
The project budget was estimated using three point estimating method.

I More
D Task Name Optimistic Likely Pessimistic Cost
1 Operational Implementation Plan 450000 $500,000 $ 700,000 $ 550,000
2 Legal and Licensing Requirements 125000 $150,000 $ 175,000 $ 150,000
3 Marketing 120000 $125,000 $ 160,000 $ 135,000
4 Construction & Furnishing 8450000 $8,500,000 $ 15,000,000 $ 10,650,000
Total 11,485,000

I
D Task Name Cost Labor Material and Equipment Management
$
1 Operational Implementation Plan 550,000 $ 137,500 $ 412,500 $ 27,500
2 Legal and Licensing Requirements $ $ 37,500 $ 112,500 $ 7,500
 150,000
$
3 Marketing 135,000 $ 33,750 $ 101,250 $ 6,750
4 Construction & Furnishing $ 10,650,000 $ 2,662,500 $ 7,987,500 $ 532,500

The estimated project budget is $11,485,000. This estimated cost is 2% higher than the earlier
estimate. The slight increase in budget is due to the construction phase delay which accounted
for 30% delay in the project schedule. The total labor cost is $ 2,871,250, material and
equipment cost is $ 8,613,750 and management cost is $ 574,250. The schedule delay directly
increases the cost of resources and project management.

Cost control methods

The commonly used cost control methods are tracking the project costs and budgeting, project
change control and employment of earned value management technique. Earned value
management analysis aids the project manager to estimate the amount of the work performed
using the allocated project budget. (Schwalbe, 2007)

Quality management plan

Quality management plan is the process of establishing quality assurance and quality control
during the course of the project (PMI, 2015). This project involves the identification of building
construction standards and codes for the construction of WRCF as well as the materials procured
to accomplish the project deliverable. A quality register will be maintained to evaluate whether
the necessary standards were followed during procurement, contracting and construction. The
quality manager will evaluate the metrics and checklists needed for this project (Shenvir and
Dvir, 2007). Quality audit will be conducted during every weekend by the manager to ensure the
quality assurance.

Conclusion
Project schedule and cost estimation are the crucial part of the project planning. Accurate project
schedule and cost estimates can save the project managers from the risk.
References
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phenomenon, it‘s time to accept other success criteria. International Journal of Project
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organizations. Emerald Group Publishing Limited, 2004.
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publishing, 2005.
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and Controlling, 10th ed, John Wiley & Sons.
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communicating, problem-solving, and everything else you need to know to get the job
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Management, 9(3):220-230.
9. Schwalbe, K. (2009). Information Technology Project Management, Cengage Learning,
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