PROJ6002 Cost And Quality Management Plans Assignment Solution

Cost Management Plans

Introduction

The first part of this assignment is related to the developing of cost management plan. The cost management plan is one of the significant section of project management plan, it includes the process of planning, cost estimating, budgeting, financing and cost controlling etc. The process of making cost management plan need very sharp insight with intense knowledge of budgeting. Therefore, there is need of several responsible and authorize persons in order to execute this plan accurately. In this assignment, the subject or the scenario on which cost management plan based is the case of St. Dismas medical centre. 

Purpose

The purpose of this plan is to develop procedures through which costs associated with developing Assisted Living Facility will be accomplished. In order to complete the assisted living facility project within the given budget framework, cost management plan plays very important role. In addition to this, there are many other cost related elements and metrics related to this assisted living facility project that also need to be consider such as cost variance reporting etc. It is obligatory for everyone to restrict themselves to this cost management plan in order to the completion of project. 

Scope

The cost management plan for developing Assisted Living facility contains several cost related components such as internal and external.  These components include:

Internal cost components

 Internal cost components in the case of St. Dismas Assisted Living Facility are as follows:

• Program development and equipment costs
• ALF Project Steering Committee
• Project consultant
• Capital equipment
• Legal and licensing
• Insurance
• Financing cost
• Phone and IS system 
• Kitchen equipment

External cost components

Internal cost components in the case of St. Dismas Assisted Living Facility are as follows:

• Construction costs i.e. building, contingency, land, furniture, A&E fees etc.
• Site improvements
• Initial marketing

No any monthly recurring costs (MRC) is part of this cost management plan.