PM Proposals Consulting CC

Getting it right before it goes wrong

Skipping this part normally costs plenty later!!

Planning and Costing

· Your scope of work should be split into manageable components—the work breakdown structure (WBS)

· The WBS elements should be split into activities to get the correct timing of activities.

· Activities are assigned resources to obtain the costing (and timing of costs)  for your scope of work. The cost S  curve.

· Your planning coupled with your contractual payments terms allows compilation of a revenue S curve.

· The difference between projected revenue per time period and projected cost for the same time periods will provide your projected cash flow per time period.

· Utilise contract / commercial conditions and client’s scope of work and Contractor’s bid documentation to compile a logical initial Work Breakdown Structure with costs allocated to the various WBS elements. If costing is still in progress, the WBS derived from the contract / commercial conditions and client’s scope of work can be utlised as a template to ensure all identified work packages are included in pricing.

· Utilise contract / commercial conditions, client’s scope of work and Contractor’s bid documentation to compile a proposed organization chart (positions / job descriptions) for the project. If costing is still in progress, the proposed organization chart derived from the contract / commercial conditions and client’s scope of work can be utlised as a template to ensure all identified positions are included in pricing. If costing has been completed the organization chart can include names, contact details or percentage allocation to the project.

· Utilise WBS, organization chart and customer subject matter experts to identify activities / durations and compile a high level preliminary time phased execution plan for the work. This plan will include all identified procurement items and allow the project team to utilize filtered milestones as a checklist for procurement / order placement. This execution plan will be provided in the Primavera Project Planner format.

· Utilise WBS, organization chart, execution plan and customer costing to allocate resources / estimated costs and derive planned costs per time period. Output will be the baseline cost S curve for the project. If available, estimated labour quantities can be allocated to activities to produce specific resource histograms and labour cost per time period.

· Utilise contract / commercial conditions and execution plan to derive time phased revenue S curve for the project.

· Utilise time phased cost and revenue to derive projected monthly cash flow for the project.