Management Case
When developing a budget for a project, we must first estimate what resources will be needed to complete the project, the necessary amount of all, when these resources will be required, and how much the resources will total, counting the effects of possible price increase. When pitting together a budget, there will be some doubt is involved in any prediction, though some estimates have less uncertainty than others. Establishing a budget for a project is much more trying than establishing budgets for more stable organizational undertakings. While the person developing the budget for a project cannot always depend on tradition as a basis for estimating the current project budget, it is not unusual for the budgeter to have budgets and audit reports for comparable past projects to serve as guides (Kerzner, 2006). The budget for adding an additional room and expanding the family room in the house is as followed:
Material- $27,500
Permits- $5,000
Labor-$12,500
The material needed should be easily ready at any hardware store. The permits should be acquired be for construction begin, to ensure a building guideline or restrictions are taken into consideration during the planning process. Cost, performance and time are the constraints on the project.
Project performance of both project managers and their resource personnel should be measured on the circumstances in which it was attained, complexity, the amount of task difficulty, changes, size, and overall business environments. This also includes examining overall project performance with regard to monetary data, agendas, and mechanical efforts (Kerzner, 2006). This project should come within the 45,000 budget. The allocated time for this project is 30 days; therefore the rooms should be complete within this time. The additional room should be built with quality material and all material used properly.