Project Management Costs 2

[gjb1]

I am interested to know from an initial costing point of view when a project is "sizeable" enough to require a full time Project Manager (or what percentage of the overall budget should be assigned to PM tasks). Should project management be costed in as a task in itself. Often in my experience the project management element of a work package is often overlooked (why - seen by others as unecessary or just part of the day to day running of the job ?)

What is the balance (or rules of thumb) for costing in Project Management for varying sizes of project.

Any views or suggestions on the above would be welcome.

gjb

 

[Auminer]

My experience for requiring a project manager has not so much been based on the value of the project - but rather the complexities of the project. The more elements, issues, contracts, etc., etc. that need to be managed, the greater the requirement for a full time committed project manager(s).

AuMiner

 

[ColCol]

Estimate your engineering hours then add 10% to 15% for the PM. This results in a full time PM for a project with 8 to 10 full time dicipline staff. Half time PM for projects with 4 or 5 full time staff. This falls apart on realy small jobs or really fast jobs, but doesn't everything?

 

[gjb1]

Thanks Colcol,

I usually use a range of between 10% to 20% of the total engineering manhours to determine my PM costs. It is good to see that "my rule of thumb" looks appropriate.

Whilst we are talking about rules of thumb another one I use is that engineering manhours should usually associate for around 30% of the total project costs in a capital build project. (I use it for a quick check to see if the costs are within the right ballpark). This does of course depend on the type of organisation you work for (manhour charges dependant)

Thanks again

gjb