McBride Project Costing Student`s

McBrideProject Costing:

Oneof the most critical aspects of carrying out this project is ensuringthe budget is as accurate as possible. The project costing will bedivided into two major parts resource allocation and cost estimatesof resources involved. The resource allocation will be done accordingto the different project tasks so as to ensure that they are properlyutilized. In this case resource means everything that will bring therecords to fruition both materials and human labor. The next partwould be to estimate the cost of the resources required for theproject to become a reality. For this part to be carried effectivelythere has to be flexibility involved. For instance there arerequirements whose cost might fluctuate due to different issues.Human labor is such a resource.

Themandatory requirements for the business include the premises whichare expected to be eight in number. Although human labor is minimal,there will still be some people needed. The home office alone willhave three brokers and two administration issues. There will be other14 working brokers based on the other offices, two in each office.One receptionist will also be required in every office. A designer isalso needed for the Sioux Falls office since it is just one big roomthat needs to be divided into different area.

Theother resources that are required for the project to actualize areequipment. According to Hugh McBride the organization will mainlyfocus on cutting costs that are would have otherwise be accrued. Oneof the ways through which this will happen will be by employingtechnology that is not only effective but also efficient. The basicequipment for the project are network and internet access equipment,printers, fax machines and telephones which will be available to theeight offices of the company.

Thebrokers who will be present in the offices will not have a basicsalary, this reduces the cost of manpower in the organization whichis a relief that not only the employer but the client too willnotice. Working with commissions is also advantageous because knowingthat without any work there will be no pay. This helps the brokerssharpen their skills and in the process get more clients. Commissionsfrom mortgages are hefty and thus at least two sales per month areadequate or survival. This leaves the receptionists who are in all ofthe eight offices. Since the secretaries do not have a lot of work asalary of $800 every month will be more than adequate for perfectdelivery. The other employees left out of this equation would thus bethe two admissions assistants in the home office. These are the twomain managers of the company as a whole. These would have a salary of$2,000. Although with time there might be an increase in the salariespaid by the company it will come with time. Also, these costs shouldbe flexible just in case of anything. For instance, the receptionistsmight have to take care of other duties which will require additionalcompensations.

Thecosts of the equipment are not very unstable and unless the projecttakes place over a long period of time there is no need for being tooflexible in this part. The basic equipment includes telephones whichcost $70 each, printers which are valued at $200, office fax machinesat $149. The brokers will be required to come with their personallaptop computers.


Schwalbe,K. (2009). Introductionto project management.Boston, Mass: Course Technology.