Project Management: Achieving Competitive Advantage, Fifth Edition

INTEGRATED PROJECT

Developing the Cost Estimates and Budget

Develop an in-depth cost estimate to support your initial project proposal narrative and scope statement, including the Work Breakdown Structure. Create a detailed justification of personnel costs, materials costs, overhead, and other forms of costs that are likely to accrue to your project. Be specific, particularly about personnel costs and commitment of time. For example, your cost table could look something like the following:

Personnel	Level	Rate	Loaded Rate	Labor-Weeks Needed*	Total Cost
Programmer	Senior	$35	$49/hr	20	$39,200
Sys. Analyst	Junior	$22	$31/hr	10	$12,400
*40-hour work week

Remember that the “loaded rate” assumes that you include the organization’s overhead ...