Project Management Essay Example | Topics and Well Written Essays - 750 words - 8

Project Management - Essay Example Some of the cost are administrative, utility bills, etc. this cost are involved in the budget preparation using an agreed rate stating that indirect cost not to exceed a given percentage of the total cost, most project use 15 percent. No, because other costs e.g. taxes and interests that were not involved in execution of the project either directly or indirectly were deducted from the revenue after selling the project. From my point of view the project seems to generate revenue over time as compared to selling it at the completion which will fetch a low price. Average cost of concrete worker per hour (ACW/H) is $ 24.83 (â€Å"Average hourly and weekly earnings of production and nonsupervisory employees on private nonfarm payrolls by industry sector, seasonally adjusted†, n.d.). These overhead charges are the costs that will be incur as the pouring of the reinforced concrete is executed, also referred to as indirect cost. The total estimate cost is $ 67,596. According to (Parker & Isola, 1991) overhead charges charge should not exceed 15% It is very important when a construction project or any other project is being implemented the overhead cost ought to be considered and caution to be taken, so as to prevent budget from being in crisis. Steel is one of the vital components required in reinforcing concrete. When the price of steel increases this has a negative impact to the budget of the project. This normally happens due to inflation or other factors that affect prices in the market. An increase in price will force the project manager to reduce the fund allocated to other activities or to source other funds to overcome the deficit. In budget preparation it is advisable that a 20 percent excess of the actual estimate should be added so as to take care of scenario like this one(Parker & Isola, 1991). Whenever hurricanes occur they cause destruction or