You are on page 1of 6

BSBPMG514 – Assessment Task 2 (Project)

Submission details

The Assessment Task is due on the date specified by your trainer. Any variations to this
arrangement must be approved in writing by your trainer.
Submit this document with any required evidence attached. See specifications below for
You must submit both soft copies and printed copies of your answers.
Soft copies-
Upload on the eLearning to the specific submission folder with a cover page clearly indicating
your name, student id, assessment no and the unit name or put those information in the
header and footer of your documents.
Printed copies-
Submit to your Trainer with the "Assessment Cover Sheet" (Filled out and signed
appropriately) attached on top of your documents.

Assessment description
Using the workplace scenario (Max Lionel Realty) information provided separately and also in
appendix 1, you will do/answer the tasks/questions regarding the project cost management
specified below. You will also need to discuss with your Operations General Manager (the
assessor) throughout the process for approval.
If you have workplace documents you wish to submit instead of using the all or part of the
 You must be the author of these documents
 You need to map the workplace documents to the Assessment criteria. This mapping
demonstrates your understanding of the assessment criteria.
 Your facilitator can provide you will details on the documentation you need to provide to
do this.
All tasks/questions in this assessment must be applied to your project (unless otherwise
stated) and specific answers (not just theory) are required to show you can apply what you
have learnt to your project – even if you do not currently undertake all aspects in your
Your answers must be satisfactory for all tasks/questions.

BSBPMG514 Manage Project Cost – Assessment 2 Last Updated: November 2017, V. No. 1.2

Page 1 of 6
Criteria for competency
To achieve competency in this Unit, you must demonstrate knowledge, skills and experience
 determine resource requirements for individual tasks identified in the work breakdown
structure, with input from stakeholders and guidance from others
 estimate project costs to enable project budget to be prepared within agreed tolerances
 develop a project budget
 develop a cost-management plan, within delegated authority, to ensure clarity of
understanding and ongoing management of project finances
 implement agreed financial-management processes and processes and procedures to
monitor actual expenditure against budget
 select and use cost-analysis methods and tools to identify cost variations and evaluate
alternative actions
 implement and monitor agreed actions to maintain financial objectives
 provide accurate and timely financial reports
 conduct appropriate activities to signify financial completion
 review project outcomes using available records to determine the effectiveness of project
cost information
 review cost-management issues and document improvements

BSBPMG514 Manage Project Cost – Assessment 2 Last Updated: November 2017, V. No. 1.2

Page 2 of 6
Appendix 1 – Scenario

Max Lionel Realty

Max Lionel Realty (MLR), in order to build customer goodwill and satisfy its legal and ethical
obligations, has decided to implement a program to:
● inform agents of legal and ethical obligations (particularly with respect to WHS and
anti-discrimination legislation) and any standards or codes of conduct followed by the
● promote high standards in professional conduct (see Real Estate Institute of Victoria
(REIV) Code of Conduct and relevant legislation)
● inform clients, tenants and potential tenants of MLR’s commitments
● achieve employee and client buy-in for initiative

You are an external consultant (from Ace Consultants) contracted to project manage activities
to achieve the objectives above.
Quality standards for deliverables:
● clearly communicate legal obligations and REIV obligations
● contain as content or support company strategic directions
● no grammar or spelling errors
● professional but friendly language
● fair and flexible delivery for intended audience
● meet audience requirements and sensitive to information needs, cultural diversity.

BSBPMG514 Manage Project Cost – Assessment 2 Last Updated: November 2017, V. No. 1.2

Page 3 of 6
Previous needs analysis for the project has uncovered characteristics and requirements of
Residential and Commercial Agents and Clients:

Agents Clients Tenants

● under stress; time ● cynical: e.g. ‘why do I ● sometimes feel

poor have to pay attention discriminated against
● highly trained and to MLR’s internal on basis of:
competent in selling business? I just want ○ lifestyle
and managing real them to manage my
○ family status
estate property.’
○ cultural
● unaware of legal, ● time poor
ethical requirement. ● not sure of MLR
○ income, etc.
just want to please obligations and
clients commitment to
● even if aware, have best-of-breed client
no idea how to apply service and ethical
to daily client practice, REIV code
practice of conduct

● unclear on overall ● feel it’s the agent’s ● residential agents have

strategic aims of obligation to fill been rude or
MLR rental/lease insensitive on
● culturally diverse. properties according occasion: e.g. ‘you
to client wishes: e.g. wouldn’t treat your rich
‘I choose who lives clients or investment
in/leases my partners this way’
property’ ● do not feel they are
● culturally diverse. adequately consulted
● residential/commercial
agents/clients have let
themselves in without
● inspections are

BSBPMG514 Manage Project Cost – Assessment 2 Last Updated: November 2017, V. No. 1.2

Page 4 of 6
Project conditions are as follows:
● Six to eight team members who must be utilised and budgeted for. Operations General
Manager (the assessor) may be consulted with to determine composition of project
● The structure of the work should include roles for project sponsor, technical experts,
quality assurance of deliverables, project manager (yourself) and roles and
responsibilities for each team member to achieve the deliverables according to
standards, etc.
● All resources must be costed and included in your budget.
● Budget: $15,000.
● You may determine your own specific deliverables so long as they are agreed with
stakeholders (the assessor at this stage), meet project objectives, and adhere to
budgetary constraints.
● Project timeframe to be determined by Operations General Manager (the assessor).
● Project should include design, development, implementation and evaluation stages
(with periodic quality review).
● Project status reports are due at 25%, 50% and 75% of allotted timeframe.

Assessment Tasks

Task 1: Determine project costs

1.1. a) Provide a project budget for the entire project scope/work breakdown structure. This budget
must be in enough detail to show costs for:
 Resources: equipment, facilities, fees and charges, human resources, materials, services and
statutory costs
 Contingencies and tolerances
 Overheads/ indirect costs
 Profit (if applicable)
b) What were your budgetary assumptions?

1.2. Provide a cost management plan for your project, which includes:
 Units of measure
 Level of precision
 Level of accuracy
 Organisation cost management procedures to be followed including roles and
 Control thresholds
 Rules of performance measurement
BSBPMG514 Manage Project Cost – Assessment 2 Last Updated: November 2017, V. No. 1.2

Page 5 of 6
 Reporting formats
 Process descriptions (these could include any two of the following and must be step by
step including who is involved and when as well as a description of how this will help you
monitor actual vs. budgeted expenditure).
o Approval processes
o Financial authorisations and delegated authority
o Communication and reporting processes
o Invoice procedures
 Organisational chart of account links (if applicable)

Task 2: Monitor and control project costs

2.1. Use two cost-analysis methods and tools to demonstrate the cost variations that occurred in your
2.2. Provide a detailed budget performance report showing variances against baseline budget.

2.3. Provide evidence of replanning to bring project back to original budget including the reason
replanning is needed and the options available to bring the project back on budget as well as the
option selected.

Task 3: Complete cost-management processes

3.1. Describe in detail a financial completion activity you would need to undertake at the end of the
3.2. Review your project performance in terms of cost management. Would your cost management
processes and procedures be considered effective? Why/why not?
3.3. List all cost issues you may have experienced on the project (in the table below) including a
recommendation for future projects.

Date Description of Recommended Action for next Lesson Learnt

problem/opportunity time/project Raised By

BSBPMG514 Manage Project Cost – Assessment 2 Last Updated: November 2017, V. No. 1.2

Page 6 of 6