General discussion

Locked

PM as percentage of Project Budget

By HECTOP ·
Can someone point me to any documentation that provides general guidelines of what percentage of a large project's budget should be spent on project management?

It's a multi-year project in the neighbourhood of $1B for equipment but there's stilla lot of questions about implementation & they're looking for a PM figure.

This conversation is currently closed to new comments.

5 total posts (Page 1 of 1)  
| Thread display: Collapse - | Expand +

All Comments

Collapse -

PM as percentage of Project Budget

by Shereif Maged In reply to PM as percentage of Proje ...

Dear Colleague, the estimation of PM cost for a certain project is directly related to two factors, the project complexity, and the project duration , the budget is not that important if you think of it practicaly, to be able to quote your client for PM first you have to set a price for the man/day accourding to the skill of PM this project requires ( Advisory PM, Senior PM, Project leader, PL,...) then can can calculate the involvment of the PM resource(s) in that project according to the project plan, (say u will need the PM 3 days a week during the project elapsed period) so u multiply the daily rate by the number of days needed to manage the project, I recomend that u add 12-15% more days to the calculated no. of days needed for PM as a contingency.
In large complicated projects with multiple suppliers and parties, a PROJECT OFFICE -PO- is structured and implemented to keep close track to the different activities, payments, ... and to provide the needed documentation for reporting, tracking, bujget flow, expenses and costs, ... this PO needs more resources of different skills, PM PL, accountant, secretary, and sure costs more than just a PM.
Hope this is fine and complete answrer.

Collapse -

PM as percentage of Project Budget

by HECTOP In reply to PM as percentage of Proje ...

I agree with your synopsis and this is what I usually do, however, the there are numerous issues outstanding that prevent that estimation at this time.

The sales consultant wants a rule of thumb that he can price into large projects such as this.

Collapse -

PM as percentage of Project Budget

by RealGem In reply to PM as percentage of Proje ...

I don't have a direct answer for you. But, I can give you some other resources to help you in your search. All of these sites have PM forums, and perhaps you can post your question there as well.

www.newgrange.org
www.pmboulevard.com
pmi-issig.org (PMI members only)

PM Boulevard also has an "ask the expert" service that might be able to help, but you must pay for that service.

Collapse -

PM as percentage of Project Budget

by HECTOP In reply to PM as percentage of Proje ...

I'll try the other references (newgrange & issig).

Thanks.

Collapse -

PM as percentage of Project Budget

by HECTOP In reply to PM as percentage of Proje ...

This question was closed by the author

Back to IT Employment Forum
5 total posts (Page 1 of 1)  

Related Discussions

Related Forums