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    This document provides information about project budgets, cost breakdown structures, and approaches to estimating project costs. It discusses how project managers use budgets to estimate total costs, common budget estimation techniques like bottom-up and top-down, and how to create a detailed project budget breakdown. It also explains that a cost breakdown structure is a hierarchical map of project costs derived from the work breakdown structure. A CBS helps define cost elements and contingencies for each task.

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    This document provides information about project budgets, cost breakdown structures, and approaches to estimating project costs. It discusses how project managers use budgets to estimate total costs, common budget estimation techniques like bottom-up and top-down, and how to create a detailed project budget breakdown. It also explains that a cost breakdown structure is a hierarchical map of project costs derived from the work breakdown structure. A CBS helps define cost elements and contingencies for each task.

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    © All Rights Reserved
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    9 views10 pages

    4 Project Budget and Cost Breakdown Structure

    Uploaded by

    reoantion6
    This document provides information about project budgets, cost breakdown structures, and approaches to estimating project costs. It discusses how project managers use budgets to estimate total costs, common budget estimation techniques like bottom-up and top-down, and how to create a detailed project budget breakdown. It also explains that a cost breakdown structure is a hierarchical map of project costs derived from the work breakdown structure. A CBS helps define cost elements and contingencies for each task.

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    of 10

    SPECS 512

    Project Budget and


    Cost Breakdown Structure

    Jobil Jocson, uap


    Course Facilitator
    Project Budget
    A tool used by PMs to estimate the total cost of the project. A Project
    Budget template includes a detailed estimate of all cost that are likely to
    be incurred before a project is completed.

    Budget Budget Project Budget


    Planning Tracking Management

    Estimating cost Monitoring the Setting


    and making expenses of the guidelines and
    budget project during control
    execution phase procedures

    2
    Approaches to Estimating a Project Budget
    01 02 03 04 05

    Bottom-up Top-Down Analogous Parametric Three Point


    Estimation Estimation Estimation Estimation Estimation

    Rate the Figure out the Analyze the data of Using data and Take the best,
    individual total and then similar projects to project worst and
    parts of the split it into task decide the cost variables to most likely
    project and or milestones suggest the case estimates
    then total total to do the
    them up average

    3
    Creating a Project Budget
    01 02 03 04 05

    Breakdown Estimate each Add estimate Add Get


    project into item in the together contingency approval
    milestones and track list and taxes
    task

    4
    Cost Breakdown Structure
    A hierarchical map of the cost of the project. The cost breakdown
    structure works off a work breakdown structure (WBS) by determining
    the cost of deliverables and task.

    Labor Material Equipment Overhead


    Cost Cost Cost Cost

    Money spent Any and all Equipment Hidden cost


    on the people material that are being that are not
    who execute bought by the used directly
    the project project allocated to a
    specific cost.
    5
    How to Make a CBS
    01 02 03

    Create a WBS Identify Cost Define


    for each contingency
    project task margin

    6
    Benefits of using CBS
    01 02 03

    Scope Schedule Risk


    Management Tweaking Management

    7
    Typical Structure of a CBS
    01 02 03 04 05

    Project Level Major Cost Subcategory Cost Elements Cost Details


    Categories and Work
    Packages
    Labor, Labor (direct cost Specific cost Specific cost
    Materials, and indirect cost) elements elements with
    Equipment, Materials (raw associated with associated
    and etc. materials and a subcategory amount
    purchased
    components)
    Equipment (rental
    and maintenance)
    8
    Approaches in Structuring Cost
    01 02

    Locked Approach Unlocked


    Approach

    9
    SPECS 512

    End of Presentation

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