VpIcauiliy UIG VYGaIUI . IWiatuininy Up UuiG Distributed Budget with the Work Package * Once the budget structure is set, the PM is left with a single budget amount that must be used to fund all the work packages + Ideally, an individual budget could be assigned to each Work Package, however each budget has to be individually “managed”: — Authorized for use — Changed to reflected updates/contract changes etc. — Monitored for amount spent vs. amount budgetted (Cost Monitoring) * A “practical” project often has hundred of individual Wo Packages, so a solution is usually needed to “collect” and control the budget at a level somewhere between one “lump sum” and individual “Work PackagesWHIICICG UY WO UlCQW LUIG HIG. UI Control Account Each Control Account (CA) is a group of Work Packages that will be: — allocated a separate budget — assigned a “charge number” that people can charge their time and expenses to — separately managed by a Control Account Manager to make sure + Funding available matches work required « Expenses charged belong to the CA + the relationship between budget allowed and costs incurred is monitoredCreating Ine Wontrol accounts * Needs to be clearly connecte to a single body of work — Must all fall under one WBS “branch” + Needs to be manageable (ie One boss) — Most work has to fall under or CICIC 3 © OBS “branch” +E rT Fo ‘Organization Breakdown ‘Structure (OBS)Control Account Do's and Don'ts * Only Work Packages included * All Work Packages must be included * Must be on one WBS branch + “Most” work must be performed by the same organizatiControl Account Structure Exampli * Create a control account structure from this WBS + Resources: Carpenter Masonry Metalworker PlumberVOTLILIOL ACCOUTIL OLILUCLUIe + Possible Solution + Note: - Can't group “Curtain Walls” and “Framing” because not the same WBS bra - Can't have CA for “Foundation” or “Structure” because not the same Resot ae Plumbing (asters eae eae | ae etd eae a FoundationDUUYEL ANULALIUIT LU WUTILEUI Accounts Budget is usually allocated to Control Accounts in proportion f=, to the original estimates for all the Work Packages they comprise Two methods: — Input activity estimates within scheduling tool — then “Roll up” to the Control Account level — If BOE sheets prepared align with WBS at sufficient level of detail - add BOE sheets for all related Work PackagesPe WOUrlrOl AGLUUTIL Tiladll Doltek Charge Assourt Plan for: POSY Based on EFC Bata [Date for Font Programs inciacies 18 MPIA WEES s Wok Package iecounts_ TW Account DecrgSn i: Once control account structure established, charge numbers are assign each either in the scheduling tool (eg. PMPlan) or (usually) within the company control accounting/ERP system The final product of cost budgetting is the “Control Account Plan” whic! distributes the budget to the Contral Accounts (hence to Work Packages and ties these into the corporate control accounting system