PMGT 510-50-A-2019/Summer - Principles of Project Management Unit 10. Individual Assignment Budget Estimating Denis A. Kornev Harrisburg University of Science and Technology UNIT 10. INDIVIDUAL ASSIGNMENT 2 Part 1. Ques
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PMGT 510-50-A-2019/Summer - Principles of Project Management Unit 10. Individual Assignment Budget Estimating Denis A. Kornev Harrisburg University of Science and Technology UNIT 10. INDIVIDUAL ASSIGNMENT 2 Part 1. Questions Question 1. You are providing a review of contractor bids for a component of your upcoming project. What can be done to determine whether or not a vendor’s bid is reasonable? Before the vendor’s bid analysis, the project manager needs to provide several analyses for cost estimating: A. Project cost analysis using different methods, tools, and approaches: Supporting details analysis. Supporting detail for project cost estimates includes describing the scope, method used to create the estimate, assumptions, constraints, and range of possible outcomes (Kloppenborg, Anantatmula, & Wells, 2019). Cause of variations analysis. There are many different causes which could vary in all projects. Some of them have a well-known character and can increase project productivity, but some of them are uncertainty and threat of risk to the project. Both types of variation need to be added to project costs and need to be considered. Analysis of the accounting system of the organization - traditional functional-based accounting systems or Activity-based costing (ABC).This analysis helps the project manager understand how costs are allocated in their organization and allow accurately estimate the amount of indirect costs that will be assigned to their projects. Different external factors – politics, currency fluctuation, and value of money. B. When the project cost estimated, the project manager can collect proposals from different vendors and estimate and compare their accuracy and reasonable with the estimated project cost. But it is the usual situation when the low
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