Budget Management

Topics: Estimation, 2005 albums, Budget Pages: 3 (522 words) Published: July 28, 2013
BUDGETING SIMULATION
Q1.Explain and critically analyze the budget that you prepared for the exercise For this exercise, estimates, budget, conditions, conditions forecast were the things to be kept in mind. From the conditions that were specified: 1) Weather-the cost can go high if the weather conditions get worse 2) Labor market-the cost can go high or low depending on the availability 3) Stakeholders cooperation-depending on them, the cost can also go high or we can even save money 4) Reliability of materials-Depending whether it is on time or not, the cost may get high or low 5) Complexity-with more complexity, comes more cost

6) Client attitude-Depending on the attitude of the client, the cost may vary. For example, if he is more concerned and asks for frequent meetings or he prefers to save money instead. Also depending on the conditions forecast:

Weather|Not good|
Labor market|Good|
Stakeholders cooperation|Not good|
Delivery|Good|
Complexity|Not good|
Client attitude|Not good or good depending on weather condition| Client quality concerns|Not good|

In addition to this, the estimate was given as:
Labor|100000|
Materials|200000|
Installations|80000|
Project management|30000|
License and approval|10000|
Excavation|20000|
Landscaping|20000|
Environmental|35000|
Contingency|100000|
Communication|10000|
Total |605000|

Keeping this estimate and conditions forecast in mind, I divided the conditions which are good and not good according to the table given above. This made labor, installations and materials’ budget to be considered less than that given in the estimate and to increase the budget of the remaining. So keeping the same total of the estimate given, I provided the following budget estimate: Labor|92000|

Materials|190000|
Installations|70000|
Project management|35000|
Licence and approval|15000|
Excavation|25000|
Landscaping|25000|
Environmental|40000|
Contingency|100000|
Communication|13000|
Total |605000|

Q2.Having...
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