Project Management: Achieving Competitive Advantage, Fifth Edition

Summary

1. 8.1 Understand the various types of common project costs and the key differences between them. ­Project budgeting comprises two distinct elements: cost estimation and the budgeting process itself. Among the well-known expenses in most projects are:

   1. Cost of labor—the charge against the human resources needed to complete the project.

   2. Cost of materials—costs relating to any specific equipment or supplies needed for project development.

   3. Subcontractors—charges against the project budget for the use of consultants or other subcontracted work.

   4. Cost of equipment and facilities—the costs of any plant and equipment, either at the project’s location or off-site.

   5. Travel—a sometimes necessary charge for the expense of having project team members in ...