Part 1 (Only need a paragraph for each question)
Maintaining and Controlling Projects
How does EVM operationalize or put into practice the management of trade-offs implied by the triple constraint discussed since the beginning of the course? Does it allow a balanced appraisal of all three parameters? Why or why not?
EVM has become especially popular as a mandatory contractual reporting methodology between contractors and vendors in very large projects. But it has come under attack in some circles. What would the two sides of the argument be?
A. Read “Three Perceptions of Project Cost.” (http://www.pmi.org/learning/library/three-perceptions-project-cost-5210
Based on your research and reading, answer the following questions:
•What are the differences in the ways project managers, accountants, and financial comptrollers perceive the expenses of a project?
•How are indirect costs involved in the preparation of the budget for a project?
•Using the typical profit and loss statement included in the Directed Reading, does it surprise you that a $1,000,000 project will generate only the Net profit shown on the bottom line of that statement? Why or why not?
B. You are going to be the project manager for the construction of a large warehouse for a major international company. Of course, there are many elements involved in constructing such a large facility, but this assignment will consider only one, the laying of the facility’s foundation (which is obviously preceded by site preparation and followed by the actual construction of the building).
In preparation for completing of this element of the project—laying the facility foundation—complete the following:
•Locate a source of data for the hourly wages that will need to be paid to those who will pour and finish the concrete foundation (the Bureau of Labor Statistics of the United States government is a good source for such information). Be sure to document the source of your hourly wage data for such concrete workers.
•Locate a source of data for the cost of a cubic yard of reinforced concrete. Be sure to document the source of your reinforced concrete cost data.
•Assuming that eight workers will be needed for the completion of the project, that they will work five days per week for 10 hours per day, and that it will take them three full weeks to complete the pouring of the foundation, what is your estimate (based on the hourly wage data that you located) of the labor expense of pouring the foundation?
•Assuming that the foundation will require 400 cubic yards of concrete, what is your estimate (based on the hourly wage data that you located) of the cost of the materials needed for pouring the foundation?
•How would “Overhead charges” (review the Budgeting chapter if you do not remember learning about this term) impact the two estimates that you have calculated?
•How would an increase in the cost of steel (one of the components of reinforced concrete) impact the budget that you had developed?
•If the construction site was impacted by a hurricane during the preparation of the foundation (meaning that work had to be temporarily stopped), how would the overall schedule of the construction project be impacted?
Please provide your answers in a 3- to 4-page Microsoft Word document.
Support your responses with examples.
Cite any sources in APA format.