Green Computing IT- Project Cost Management

Green Computing IT- Project Cost Management

About the Project

The paper is about the cost estimation project for the Green Computing Company. The goal of the company is to make sure that the environment is not harmed and at the same time, the company is able to earn huge revenues. The company wants to reduce its costs and make sure that the profits of the company are not impacted. The company has undertaken a project that it thinks will help the company to achieve its goal of earning more with less costs. The cost estimation will be performed on the basis of WBS. The cost estimation will be done and will be compared to the cost that actually incurred at the end of the project. The project should be completed within a span of six months, which means that the impact of inflation will not be in this project.

The preliminary total cost estimate was calculated to be $ 390,000 based on the following compensation rates: PM $100/hour (26x40x100) = $104,000 (full-time); Teresa $90/hour (26x20x90) = $46,800 (part-time); James (Sr. Consultant) $90/hour (26x20x90) = $46,800 (part-time); Le $90/hour (26x20x90) = $46,800 (part-time); Matt $80/hour (26x20x80) = $41,600; Outsources $200/hour (26x20x200) = $104,000. All team members are senior level experts in their respective areas; therefore, the need for training fees is not expected.

Based on the above distribution of funds, the projected cost estimate of $ 390,000 is represented in terms of percentage in the WBS as follows:

Initiating: 10% = $39,000

Planning: 15% = $58,500

Executing: 65% = $253,500

Monitoring and Control: 10% = $39,000

A reserve fund ($78,000) was calculated at 20 percent of the total estimate. After the total cost is approved, the team can then allocate the costs for each month based on the project schedule and when the cost will ...