Page 217 - Project+

Communicate move 2,400 brochures $1.50 $3,600 Estimate
purpose (marketing provided by
materials) Juliette in
marketing

Moving company 75 loads $1,500 $112,500 Estimate
services based on calls
and quotes

from several
moving
companies

Furniture and Desks, chairs, $150,000 Estimate
fixtures tables based on
current
pricing with
the
organization’s

vendor

Interior design 700 hours $180/hr $126,000 Estimate
provided by
facilities
manager

Network printers 3 $25,000 $ 75,000 Estimate
provided by
Jason, IT
director

Relocate fleet cars 16 hours $75/hr $1,200 Estimate
provided by
Joe, fleet
manager

TOTAL Estimated $468,300

Cost

Early in the project, Kate informed you that the budget was fixed at $450,000. The
project estimates are coming in over that amount—not by much, but you know

that this budget is a constraint and can’t go over.

You also haven’t accounted for contingency reserves in case there are unexpected
costs. You will meet again with Leah in procurement to see whether she can work
with the moving company to get a better rate. You set up a meeting with the
facilities manager to go over the cost estimates for the interior design services and
the furniture and fixtures. Perhaps you can cut down on the number of design
hours needed and choose cheaper art work for the offices.

217