10. Discuss what is the intended use for each of the following cost models? a. Project budget b. Project cost breakdown or schedule of values c. Progress estimates d. Change order estimates e. Project cash flow f. Final estimate
Answer
(a) Project budget
The intended use of project budget is to have a understanding of the required funding in order to complete the project. It helps in determining the feasibilty of the project and its associated cost.
(b) Project cost breakdown and schedule of values
The intended use of project cost breakdown is to provide an itemized list of the parts of the project including their associated cost time for completion. This helps in tracking the progress of the project and maintaining the budget, also to ensure the project completion on time.
(c) Project estimates
The intended use of project estimates is to provide a real time project's spending so far, identify potential cost overruns and helps in adjusting the project's budget.
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