Project and Cost Management
To: Alghanim International general trading and contracting
A project is a tool that consists of scientific and technical work, in order to fulfill a particular ambition that requires human and equipment resources. Performance, time, and cost are the most important qualification to perform a reasonable project. Projects are needed to make the change and growth that will make an influence through years. Moreover, projects can provide new products, services and insure safety to improve its effectiveness. Therefore, a successful project can be determined if the customer is satisfied, the team has the ability to work together to perform better and it creates value and meaning for its individual member. As a consequence, for a project to be executed well, project management failure should be avoided, organizing and managing a project with the right tools, and cost should be calculated and planned wisely.
There are a plenty of project management failure specifications that could affect a project success. For instance, delaying a task that should’ve been completed earlier. Another instance is giving responsibilities not authorities for individuals with boundaries that could affect their performance. Also focusing on process yet neglecting people and forgetting about quality. On the other hand, some of the keys for a successful project to be accomplished are if it is planned from the beginning with priorities, tasks are arranged and listed for everyone, maintaining quality at all time, being specific as to outcomes, communicating with colleagues, considering time, being within the budget given or less, etc. Above all, cost is one of the main keys that should be managed by specified and professional expertise to ensure that the project is completed within the approved budget that will plan and control resources, costs, profitability and risk. In addition, to estimate a project cost, expertise should consider some types of estimates to assure pricing information, which are conceptual estimate, preliminary estimate, engineers estimate, and bid estimate.
However, cost estimate for each thing related to the project might be complicated, but expertise has to be precise in order to fulfill a decent project. Therefore, costs are estimated through two categories, which are direct costs and indirect costs. Direct costs are consisted from labor costs, material costs, equipment costs, and subcontract costs. Meanwhile, indirect costs are divided into fixed or business overhead for instance, taxes and some utilities, and for the variable overhead examples are water, trailers, temporary heat, quality controls, and testing. Ultimately, time should be committed for the job, and it is important as much as cost to provide a noble project.
In conclusion, a project and its cost should be planned and managed through technical, professional, and expertise to qualify the mission. Therefore, the cost of a project literally ought to be specified within the scope of the project to insure a managed and an organized successful project.
Bandar Yousef
July 7th, 2018
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