The paper 'Project Budgeting' is a good example of a Finance and Accounting Assignment. The project manager needs to take the initiative of ensuring the future operations of the plant are at stake. It starts with an entire plan that involves a strategic involvement of the project manager was budgeting for the whole project, making plans like scheduling for the project, and organizing the resources within a given completion time of the project (Clark et al. 180). Since the whole project requires maintaining the standards of the West Australian storage facility it is necessary for the project manager to acquire the best schedule, appropriate resources, and timely budget to meet the goals of the project such as ensuring that the environment is at best standard and also that the people around are safe. From the beginning, the project manager according to the state of the Western Australian site certain goals needs to be particularly met.
For instance, due to the bad state that the petroleum storage tanks are at including their complex and outdated design, it becomes a major area of concern for the project manager.
As Larson et al. (212) claim other issues such as assessing the safety of the surrounding environment and people’ s health becomes the area to look into whenever the project manager involves himself in the planning. This would keep the company safer from paying all the fines that might be due to the environmental fines because of the petroleum leakages from the storage areas. Project budget becomes an important tool when it comes to making any project implementations. The project manager in this case of maintaining the West Australian facility the budget will only be a success when the person can use it as a guideline to achieve various project milestones.
And below is the budget that a project manager would develop to ensure the values in the budget makes the whole project is accomplished. Estimate Budget Total Budget Actuals Totals Variance Contract Services Tank Cleaners Tank Painters $5000 $8000 $20000 $25000 $22000 $22000 $3000 Equipment Supplies 6Steel Patches 2m2 7Steel Patches 3m212 Steel anchors $12000 $13500 $15000 $55500 $60000 $77000 $77000 $17000 Transportation Expenses $2500 $2800 $3000 $3300 $3300 $300 Overhead or Indirect Costs Personnel Employee compensation $3000 $2500 $5700 $6000 $6200 $6200 $200 Grand Total $48500 $66000 $94000 $108500 $108500 $20500 Although a project budget should be focused on the specific numbers and accurate valuation of the resources needed to complete the entire project of WA storage facility, the main understanding of the budget remains that it is always an estimate.
The employees or rather the personnel involved need salaries. These might be salaries and the wages of either part-time or full-time services. The project consists of personnel who were taken as contract service personnel including cleaners and painters for maintaining the three tanks. Contract services therefore may include either the outsourced services or the other personnel included to work in the project management duties. On the other hand, equipment supplies might involve purchasing and delivery of the equipment used in the WA storage facility.
As a project manager, the estimated budget should go concurrently with actual value to keep the budget at par (Lewis 90). The expenses for acquiring the unleaded petroleum to purchasing the steel anchors required on top of the tanks for working on the heights and the steel patches become part of the budget. The budget also includes the transportation expenses for delivering every equipment and even the working personnel to the site. It becomes necessary for the project manager to ensure a smooth flow of both the administrative and field operations.
Burke, Rory. "Project management: planning and control techniques." New Jersey, USA (2013).
Clark, Ian, and Trevor Colling. "The management of human resources in project management-led organizations." Personnel Review 34.2 (2005): 178-191.
Herroelen, Willy, and Roel Leus. "Project scheduling under uncertainty: Survey and research potentials." European journal of operational research 165.2 (2005): 289-306.
Kerzner, Harold. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons, 2013.
Larson, Erik W., and Clifford Gray. Project Management: The Managerial Process with MS Project. McGraw-Hill, 2013.
Lewis, James P. Project Planning, Scheduling & Control, 4E. McGraw-Hill Pub. Co., 2005.