Budget and Costs

Project Budget (Cost Management)
1. Explain your approach to estimating the project cost (e.g., top down, bottom up, etc.) and why that method was chosen.
2. Create a table that shows the original budgeted cost (5 million) and the actual budgeted cost (side by side). Include line items for labor, materials, contract, equipment, travel cost, and so on. (this can be made up numbers using the information below.)
3. Compare the budget from the charter to the final budget and explain any variances that occurred from your original budgeted cost (5million) in the project charter and the current project cost (30 million).
4. Explain your budget contingency plan and how much is budgeted for contingency.

Information about the project: expanding a parking lot

* Current projected budget – $30 million
* Through 2018, $1 million invested: Environmental analysis
* Preliminary engineering and design
* Acquisition of an additional 5 acres of land to accommodate 1,000 parking spaces
* The remaining $29 million project cost will be financed through a combination of federal, private and local funds.
* Park DIA’s New Starts Program, $ 3 million (10%)
* Local funding match, $2 million in cash and $15 million in permits (7%)
* DIA’s investment, $2 million (7%)