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Project Cost Management PRJM 6001: Assignment 1
Project Cost Management PRJM 6001: Assignment 1
PRJM 6001
SEMESTER 2, 2020
CO-ORDINATOR: Charles Reynolds
ASSIGNMENT 1
COST ESTIMATING, BUDGET & CASH FLOW
ANDREW HANOOK
Student ID. 19955461
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Please find below the assignment submission of the detailed cost estimation and cash flow for the two-day
This submission has been made in the following parts in order to cover all the required dimensions:
3.0 COMPREHENSIVE BUDGET ANALYSIS THROUGHT THE LIFE CYCLE OF THE PROJECT
4.0 CASH FLOWS DEPICTING THE DETAILED REVENUE GENERATION AND EXPENDITURES
Appendix I has been attached after the concluding remarks of this document to illustrate the sources of
pricing as references for your consideration. In case of any ambiguity, you may probe the sources using
it. We hope to discuss the assignment with you and look forward for an affirmative response.
Kind Regards
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TABLE OF CONTENTS
1.2 INTERNATIONAL AND LOCAL GUEST SPEAKERS FOR HEADLINE AND SUPPORT ACTS 6
1.2.1 Headline Act: Michael Nir as a guest ssspeaker on 11th September 2021...........................6
1.2.2 Support Act: Eve Ash as a guest speaker on 11th September 2021......................................7
1.2.3 Support Act: Lindsay Adams as a guest speaker on 11th September 2021..........................7
1.2.4 Headline Act: Loredana Abramo as a guest speaker on 12th September 2021....................7
1.2.5 Support Act: Nick Abrahams as a guest speaker on 12th September 2021..........................8
1.2.6 Support Act: Dr James Adonis as a guest speaker on 12th September 2021.......................8
1.3 SPONSORSHIP..................................................................................................................................9
1.5.1 Tabular enlisting of revenue generating items and expenditures incurred with 300 tickets to be sold:
11
1.5.2 Tabular enlisting of revenue generating items and expenditures incurred with 200 tickets to be sold
provided that the net expenses are the same:....................................................................................13
3.0 COMPREHENSIVE BUDGET ANALYSIS THROUGHOUT THE LIFE CYCLE OF THE PROJECT20
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The comprehensive budget estimation for the product life cycle from September 2020 till the completion of the
event in September 2021 is given below in the form of spreadsheets:.............................................20
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HANDS UP IN T Business Case Perth Conference on Project MGTL
conference which will be held in Perth in the month of September 2021. Its duration will be
of two days and the dates will be set in the mid-week of September.
Two international high-profile keynote speakers to deliver the speech with division of one
per day.
Four Australian sourced speakers with academic excellence and industrial expertise in
project management.
At the end of second day, a dinner will be provided along with entertainment.
A detailed budget has been devised for the said projects with the expenditures of each entity.
The comprehensive costing of each item included has been done using web sources with
references given in the Appendix I. Apart from expenditures, the revenue generation process
and revenue generating item have also been enlisted in both tabular and graphical format. The
costing has been done on monthly basis as well throughout the project life cycle. After
holistic budgeting, costing and revenue analysis, it has been inferred that the project will
bring the required profit margin only in best case scenario of 300 delegates. However, in case
of below capacity ticket sales, the situation can be resulted into a loss. Since the ticket selling
process will begin a few months earlier, it is recommended, not to conduct such conference if
the ticket sales are fewer. This measure is recommended to avert loss. Moreover, the
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statistical analysis and calculations depict that there are ample chances of project success
with the desired profit margin as shown in detail in the below sections.
All the cost estimates have been mentioned in the document for your consideration. The
costs are calculated using bottom up approach. It includes the expenses off all required stuff
in the upcoming educational conference on project management. We are glad to let you
know that the cost estimates are the nearest accurate values with accuracy in budget and the
estimated calculations of profit margins. The prices are undoubtedly updated ones as of the
current month of August 2020 and are mentioned in the relevant Australian currency.
However, all the values are in accordance with the nominal contingency rate of 5% as we
In accordance with the instructions given, atleast 15% profit is set as a target. In order to
meet the target, the following international and the local acts are organized to catch the
desired target market and the fulfil the profit requirements via maximum ticket selling.
1.2.1 Headline Act: Michael Nir as a guest speaker on 11th September 2021
passion about public speaking. He has diverse expertise in team management and project
of course project management. Moreover, he is famous for his interactive style as he used
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to inculcate his personal experiences and humorous anecdotes to bring color to the
1.2.2 Support Act: Eve Ash as a guest speaker on 11th September 2021
Businesswoman of the Year. Moreover, she is a versatile speaker and a dynamic trainer
honorable rewards, Eve is highly honored across the entire speaking industry.
1.2.3 Support Act: Lindsay Adams as a guest speaker on 11th September 2021
experience both in Government owned enterprises and his own business setups. His key
areas of expertise include strategy making, public relations, Project Management and
business processes.
1.2.4 Headline Act: Loredana Abramo as a guest speaker on 12th September 2021
Loredana Abramo is a US based high profile international speaker. She is currently serving
as a facilitator for online classes at Boston University Metropolitan College. She has a
1.2.5 Support Act: Nick Abrahams as a guest speaker on 12th September 2021
Nick Abrahams is a splendid speaker from New South Wales with regular sessions on the
very concept of corporate and employee innovation. He holds the glorious view of a far-
sighted and pragmatic futurist, and examines the approaching effects of technological
revolution in the corporate sector in the near future. His profile is bombarded with a huge
1.2.6 Support Act: Dr James Adonis as a guest speaker on 12th September 2021
Dr James Adonis is famous among Australian People Management Thinkers. He is also one
With a doctorate background, his practical experiences are also enriched in various
Moreover, he is the co-founder and MD of Team Leaders that is also an emerging giant in
Minutes to midnight is a five pieces’ rock band in Perth, Australia. This band plays all the
music favorites of general masses including AC-DC, the romantics, Billy Idol, Aerosmith,
INXS, Foo Fighters and a range of related stuff. Their show is perfectly aligned with high
class light and sound. This band is highly recommended by event planners for diverse set of
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1.4 SPONSORSHIP
The total sponsorship of $10,000 has been projected to be achieved from the
sponsorship will be collected as well. The selling of conference tickets will begin five
months before the actual conference in order to secure the revenue during bearing the
expenses.
Ticket price for the conference has been set at $80.00 for Day 1 and $90.00 for Day 2 at a
capacity of 300 tickets per day. It includes all the activities of that particular day,i.e.,
presentations of three guest speakers on Day 1 and the same on day 2 along with
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1.6 PROFIT SUMMARY
The following budget along with the timeline and cash flow scenario is representing the best
case analysis of 300 delegates in the Sais conference. Also, the worst case analysis
incorporating 200 delegates is mentioned below for your review, It is an attempt to present
the realistic picture of required profit. However, the overall summary of revenues and
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1.5.1 Tabular enlisting of revenue generating items and expenditures incurred with 300
tickets to be sold:
Summary
REVENUE GENERATION EXPENSES
List of revenue Total Expense item Budget allocation
Sponsors
Parking $3000.00 Consumables $112.00
Tickets(Price*Qu $51,000.00 Motor Vehicle $550.00
antity)
Contractors $8,130.00
Marketing and PR $2,058.00
Net revenue $84000.00 Headline & Support $43,750.00
Security $1120.00
Production $885.00
Hospitality $900.00
Other Admin cost $11,00.00
Covid related expenses $$692.00
Contingency $3340.00
Total Expenditure $70139.00
TOTALS
Total revenue
$84000.00
Expenses
$70139.00
Total profit
$13861.00
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1.5.2 Tabular enlisting of revenue generating items and expenditures incurred with 200
tickets to be sold provided that the net expenses are the same:
Summary
REVENUE GENERATION
List of revenue Income
generating items
Sponsorship $30,000.00
Parking $3,000.00
Ticket sales $34000.00
Total Revenue $67000.00
TOTALS
Total Revenue
$67000.00
Expenses
$70,139.00
Total revenue
$-3139.00
LOSS
According to the above calculations, the 15% required figure of profit margin will only be
met in best case scenario when the full capacity ticket number of 300 will be sold. However,
it will end into loss if the tickets will be sold before the said capacity of 300. In order to
successfully meet the required profit margin, it is mandatory to sale the tickets at full capacity
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2.0 COST ESTIMATES
The detailed list of cost figures of the estimated and respective costs of various inputs has been
written in the following section. All the pricing related values are in Australian Dollars and are
updated as of August 2020. Appendix A includes all the screenshots and web links of cost
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DETAILED ENLISTING OF
EXPENDITURES
INCURRED
provider Amount
Mineral Water Water for team 4 x 24 bottles bundle @ $28 / Amazon $112.00
24 pack
Motor Vehicle $550.00
Work
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Item Notes and Calculations Supplier Total
wage rate@$25
General administrative staff to be hired
Staff Payscale $5280.00
for only conference days: 10 individuals
supplies in
case of
emergency
Promotion and
Promotion and publicity $2058.00
publicity
Displays / Promotions including
Promotion Guess Work
pamphlets, posters and digital $1000.00
posters and
marketing. Inclusing online ticket
web ticket
selling
sales
Photographer to be hired for 6 hours
as a guesswork)
Eve Ash to speak on 11th September Platinum Speakers $5000.00
as a guesswork)
Nick Abraham to speak on 12th Platinum Speakers $7500.00
Security $1120.00
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Security – 2 Guards x 8hrs x 2 days @ $35 per hour Corporate $1120.00
Stages Security
Australia
Production $885.00
Lights 6 defect lights with stands and all installation cost Hireking $225.00
Stage Hiring (appwith skirting and carpet for 2 days including Perth
Staging $300.00
set up and pack down @ $60 per 1.8 x 1.2 m Party
Hire
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Item Notes and Calculations Supplier Total
performers
Food Day 1 only ( when dinner will not be provided) , for headliners and Guess $500.00
Work
Staff catering Day 1 only (when dinner will not be provided) Guess $200.00
Work
Other Administrative $1100.00
Expenses
Miscellaneous Missing items Guess $100.00
Expenses Work
Reserve tickets as 11 x 2nd day tickets at standard ticket price + envelops for
Standard
complementary service presentation @$10 $1000.00
ticket price
for Ssponsors
+ Guess
work
Covid Related $692.00
Expenses
Surgical masks 800 x 3 play masks @ $0.085/piece Alibaba $68.00
Works
Contingency $3340.00
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Estimated per unit cost
capacity-300
$233.00
Estimated per unit cost
Capacity- 200
$350.00
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3.1 COMPREHENSIVE BUDGET ANALYSIS THROUGHOUT THE LIFE CYCLE
OF THE PROJECT
The comprehensive budget estimation for the product life cycle from September 2020 till
the completion of the event in September 2021 is given below in the form of spreadsheets:
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EXPENSES PER
MONTH
Monthly entities Sep- Oct- Nov- Dec-20 Jan- Feb- Mar- Apr-21 May- Jun- Jul- Aug- Sep-21 Total
remarks for 20 20 20 21 21 21 21 21 21 21
calculations
Human Resource $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $7500 $7,500.00
Expenditures
Interns wage (last
month) $7,500
Consumables $0.00 $0.0 $0.0 $0.00 $0.0 $0.0 $0.0 $0.00 $0.0 $0.0 $0.0 $0.0 $112 $112.00
Staff Water Purchase
0
Motor Vehicle (last $0.00 $0.0 $0.0 $0.00 $0.0 $0.0 $0.0 $0.00 $0.0 $0.0 $0.0 $0.0 $550 $550.00
month)
Fuel
$500.0
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0
parking
$50.00
Contractors $0.00 $0.0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.0 $370 $7760 $8130
Venue hire - 20% to be
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month.
event)
Adm Staff – payment $5280
days
Promotions and $0.00 $0.0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $200 $200 $200 $305 $1152.2 $2058
publicity
Displays / Promotion (5
event)
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remaining to be paid 80
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`
Headline & Support $0.0 $0.0 $0.0 $0.00 $0.0 $0.0 $0 $10,000 $0.0 $0.00 $4750 $0.00 $29000 $43750
Acts
Headline act - Day 1 -
50% payment on
earlier) 00
Support act - Day 1 -
booking(3 months 00
earlier)
Support act - Day 1 - $1000. $4000.00
20% payment on 00
booking(3 months
earlier)
Headline act - Day 2 -
50% payment on
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booking(6 months $5,000. $5,000.00
earlier) 00
Support act - Day 2 -
booking(3 months 00
earlier)
Support act - Day 2 -
booking(3 months 00
earlier)
Support act - Day 1 - $250.0 $1000.00
20% payment on 0
booking(3 months
earlier)
Security $0.0 $0.0 $0.0 $0.00 $0.0 $0.0 $0 $0.00 $0.0 $0.00 $0.00 $0.00 $1120 $1120
Stage security during $1120.00
event days
Production $0.0 $0.0 $0.0 $0.00 $0.00 $0. $0 $0.00 $0.0 $0.00 $0.00 $60.00 $825.00 $885.00
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`
Sounds $360.00
Lights $225.00
Stage hire(20% $60.00 $240.00
payment a month
booking)
Hospitality $0.0 $0.0 $0.0 $0.00 $0.0 $0.0 $0 $0.00 $0.0 $0.00 $0.00 $0.00 $900.00 $900.00
Food (event days) $500.00
alcohol $200.00
Staff catering $200.00
Other admin cost $0.0 $0.0 $0.0 $0.00 $0.0 $0.0 $0 $0.00 $0.0 $0.00 $0.00 $0.00 $1100 $1100.0
0
Miscellaneous $100.00
Tickets for sponsors $1000.00
Covid related $0.0 $0.0 $0.0 $0.00 $0.0 $0.0 $0 $0.00 $0.0 $0.00 $0.00 $0.00 $692.00 $692.00
expenses
Masks $68.00
Sanitizers $519.50
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Gloves $104.50
Contingency $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $3340.00 $3340.00
General contingency $3340.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $10,000 $200.00 $200.00 $4950.00 $54051.2 $70139.0
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4.1 CASH FLOWS DEPICTING THE DETAILED REVENUE GENERATION AND EXPENDITURES
revenue generation since the beginning of September 2020 till the conclusion of the conference in
September 2021. The estimated monthly revenue generating entities and their respective values are
precisely added in tabular form for both the best and the worst case scenario of 300 tickets and 200
tickets respectively.
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REVENUE PER
MONTH
Item Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May-21 Jun-21 Jul-21 Aug-21 Sep-21 Total
20 20 20 20 21 21 21 21
Sales - Parking $0.00 $0.0 $0.0 $0.00 $0.0 $0.0 $0.0 $0.0 $0.00 $0.00 $0.00 $0.00 $3000 $3000
$3000
Sales - Ticket sales(300) $0.00 $0.0 $0.0 $0.00 $0.0 $0.0 $0.0 $0.0 $10,200 $10,200 $10,200 $10,200 $10,200 $5100
$10,200 $10,200 $10,200 $10,200 $10,200
Sales - Sponsorship $0.00 $0.0 $0.0 $0.00 $0.0 $0.0 $0.0 $0.0 $10,000 $10,000 $10,000 $0.00 $0.00 $30,000
Government sponsorship $10,000
Private sponsorship $10,000 $10,000
Totals if 100% tickets $0.00 $0.0 $0.0 $0.00 $0.0 $0.0 $0.0 $0.0 $20200 $20200 $20200 $10200 $13200 $84000
sold
Total values in worst $0.00 $0.0 $0.0 $0.00 $0.0 $0.0 $0.0 $0.0 $16800 $16800 $16800 $6,800 $9800 $67000
case (Q=200)
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$70,000.00
$60,000.00
$50,000.00
$40,000.00
$30,000.00
$20,000.00 $20,200.00
$20,200.00
$20,200.00
$13,200.00
$10,000.00 $10,200.00
$0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
20-Sep 20-Oct 20-Nov 20-Dec 21-Jan 21-Feb 21-Mar 21-Apr 21-May 21-Jun 21-Jul 21-Aug 21-Sep Total
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70000
$67,000.00
60000
50000
40000
30000
20000
$16,800.00
$16,800.00
$16,800.00
10000 $9,800.00
$6,800.00
$0.00
01 $0.00
2 $0.00
3 $0.00
4 $0.00
5 $0.00
6 $0.00
7 $0.00
8 9 10 11 12 13 14
20-Sep 20-Oct 20-Nov 20-Dec 21-Jan 21-Feb 21-Mar 21-Apr 21- 21-Jun 21-Jul 21-Aug 21-Sep Total
May
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According to the cost estimates and revenue calculations, it is clear that the required profit
margin can be achieved if the tickets will be sold at full capacity of 300. In case of below
capacity ticket selling, it will be difficult to reach the desired profit margin of 15%.
On the revenue side, the estimated revenue calculations show that the revenue will begin six
months earlier to the actual event with maximum value in the month of the event.
Since the ticket selling process will begin a few months earlier to the conference, if the desired
level of sales is not achieved, the cancellation of the conference will be considered as an option
As per the feasibility report and records of previous similar conferences, it can be predicted that
the conference will not end into a failure. We are looking forward for an excellence
commencement of this event with splendid reception and an output of more than 15% profit
margin.
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4.1 APPENDIX I
midnight
https://www.crowdpleaser.co
m.au/Minutes-to-Midnight?
search_terms=Bands
Contractors
Venue hire + https://www.tagvenue.com/au/
Dinner rooms/perth/12715/tompkins-
on-swan/tompkins-on-swan-
room
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Photographer https://www.snappr.com/how-
much-does-a-photographer-
cost/event/perth-wa
peaker-hire-perth.shtml
Lighting https://www.hireking.com.au/l
ighting-hire-perth.shtml
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m.au/product/stage-hire-perth-
skirting-carpet-top-1-8-x-1-2/
ium/mask_surgical.html?
src=sem_ggl&cmpgn=977314
5744&adgrp=110812558468&
fditm=&tgt=aud-
806308081856:kwd-
296951535296&locintrst=&lo
cphyscl=1011082&mtchtyp=b
&ntwrk=g&device=c&dvcmdl
=&creative=440547503408&p
lcmnt=&plcmntcat=&p1=&p2
=&aceid=&position=&gclid=
Cj0KCQjw1qL6BRCmARIsA
DV9JtZgKVQXHdMUVXCU
0ex8b9ImCvwy6134K6f6tbN
prXYIwjWXTmIcfYEaAvGB
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EALw_wcB
Gloves https://www.officeworks.com.
au/shop/officeworks/p/prochoi
ce-disposable-polyethylene-
gloves-medium-100-pack-
pcdpecm
Sanitizer https://www.officeworks.com.
au/shop/officeworks/c/workpla
ce-
supplies/bathroom/personal-
care/hand-cleaners-sanitisers
Guest Speakers
Loredana Abramo https://www.linkedin.com/in/l
oredana-abramo-4285213/
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speakers.com/speakers/michae
l-nir-keynote-speaker/
com.au/Speakers/Lindsay-
Adams.aspx
com.au/Speakers/Nick-
Abrahams.aspx
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com.au/Speakers/Eve-
Ash.aspx
Dr James https://www.platinumspeakers.
com.au/Speakers/Dr-James-
Adonis.aspx
Human Resource
Intern Salaries https://au.indeed.com/salaries/i
ntern-Salaries,-Perth-WA
Administrative https://www.payscale.com/res
_Assistant/Hourly_Rate#:~:tex
t=An%20early%20career
%20Administrative
%20Assistant,
%2424.14%20based%20on
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%20567%20salaries.
Stage management https://www.payscale.com/res
team earch/AU/Job=Production_Te
am_leader/Hourly_Rate
Miscellaneous
Water https://www.amazon.com.au/g
p/offer-
listing/B07S1XJK5P/ref=dp_o
lp_unknown_mbc
Security
Private Security https://www.corporatesecuri
security-guard/
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