7.4.3.3 Estimation of cost per activity/ task

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Apart from identifying when the various costs are likely to occur, it is also important to identify the cost of undertaking each activity/ task laid down in the Activities Schedule.

As with the development of the Cost Schedule this can be done very easily and without much effort if you are using commercial software like MS Project. In this case the estimation of cost per activity/ task is done automatically by the software, provided that you have assigned:

1.Resources to project activities/ tasks (refer to 7.4.2.3)
2.Cost rates and cost per-use to each of the resources (refer to 7.4.3.2), and
3.Fixed costs to project activities/ tasks (refer to 7.4.3.2).

In case that you are not using specialised software you have to perform these actions manually or even better by using an excel spreadsheet to speed up the calculations.

Once you have estimated the cost of each activity/ task you should review the total cost in order to verify that it falls within your budget. If the total cost does not meet your budget, you may need to examine each individual task's costs and each resource's task assignments to see where costs can be reduced. As a result of this process you may come up with revised Resource and Cost Schedules or even with a revised Activities Schedule, since time, costs and resources are interrelated. This means that applying changes to one of them will cause respective changes to the others.  

 


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