Project management costs
In order to plan well for the costs of a given project, it is necessary to make a prior arrangement by carrying out cost analysis. All the concerned stakeholders should be involved in the entire project. At the same time, proper planning should be done to ensure that the available resources are used without any misappropriation whatsoever. Meaning, it should have a well defined scope to act as a guideline for the entire exercise. This should be broken down, formally verified and accepted by all as a true and correct estimation for the cost of the project (Harold, K., 2003).
At the same time, such estimation should be based on assumptions that are workable and can not mislead the stake holders at all costs. If this is done, it will help in predicting any problem that may derail a smooth implementation of the project. Besides this, there should be an analysis of the foreseen risks that may be faced in the course of the project. Hence, the Manager, and the RM will be assessing the progress of the project and any occurrences that could be considered a risk (Fleming, Q., 2005). The assessments, as well as any and all reports from the construction staff and/or the functional managers will all be used to determine risk occurrences, which will all go into the register, be they big or small.
Then there should be a reporting of these estimations to the procurement department that tracks them to ensure that they are real and are in a fulfillment of the set objectives. They will then prepare standardized procurement documents such as the firm fixed price contracts entered into with the suppliers, the Requests for Proposal sent out to several suppliers, and the benchmark (Paul C. D. et al., 2005).
Fleming, Q. (2005). Earned Value Project Management (Third Edition Ed.). Project
Harold, K. (2003). Project Management: A Systems Approach to Planning, Scheduling, and
Controlling (8th Ed. ed.). Wiley.
Paul C. D. et al (2005) The right projects done right! John Wiley and Sons.