Resources

Before the implementation phase of a project, resource requirements must be studied and budgets understood. You must be able to justify the expenditure against the benefits. Once you have your expenditure approved, you are bound by it. Estimate your costs carefully. Select Contingency for more information.

Think about who needs to be involved and when. How long will they be needed? Will they be needed throughout the project or for just a couple of days a week? If part time as per the latter, who will pay for the remaining days of the week? Can the resource be shared with another project? Will the needs of the other project conflict with the needs of yours? What would happen if the resource was not available, through illness for example? Staff are entitled to holidays. Is there adequate cover available? Make sure you capture holidays and bank holidays within your resource planning.

Other resources have an impact on the budget. In Engineering projects, for example, Materials are usually a major cost. It may be necessary to instigate a minor project to research availability, cost and quality. Failure to identify all costs will lead to loss of credibility. A proper estimate at this stage will also reduce the later risk of requesting additional funding once the project is in its implementation stage.

The team will need a place to work in and equipment that is suitable for the tasks ahead. Is a suitable place to work available? Will it need refurbishment? Will it need furnishing? Will new equipment, say computers, be required? All of this will this need to be addressed. Do not assume that such facilities always come from a general budget. Even if it does, it may not necessarily meet the projects specific requirements. Do remember though, that your team will have to use these resources. Inadequate resources can lead to low morale, and subsequent low production. Ensure attention to detail and inform the team of what improvements are to be made.

All too frequently the costs for travel, accommodation and meeting facilities are forgotten or under estimated. Pay attention to detail and walk the job. Take time to think through what will happen over the project period.

Whatever resources you consider appropriate, their costs can be calculated in two ways. Absolute and Marginal costing. Absolute costing means calculating the exact cost of the resource. If the resource is essential to the project it becomes a project cost. If the resource can be allocated as a shared item with another project say, you can proportion the cost accordingly. Remember though that you do not always have the use and therefore control of a shared resource. Make sure that the potential project saving is proportional to the risk. However, with practice and experience, Marginal costing is easy to calculate and is generally a good way to accurately measure the cost of a project.

For most projects you will require the assistance of a professional estimator. The estimator will provide cost/benefit analysis and recommendations. His assistance will provide a clearer path in the decision making process. His professional knowledge and experience will further reduce the project risks. To do this, he will need to work closely with the project planner and the project manager.

Always try to be a realist. Unless agreed with the sponsor, never work with an optimistic estimate