Costs in Project Management – Costs associated with the Projects
February 12, 2025
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This article is a follow up of the earlier one related to the project management processes for an automation tool. This tool is to be used for automating the processes of a maintenance project in a software company.
A rework can arise due to:
Rework arising due to change in scope means that the project baseline has to be modified and corresponding changes made to the project management plan, resource plan, schedule plan etc.
Any change in scope affects not only the schedule but the cost as well. So, a proper scope change mechanism would take into account the effect to the schedule as well as the costs associated in carrying out the same.
Considering the scenario where 20 percent of the rework has to be done in the context of the automation tool it means that:
There are two aspects of scope management. One is preventive in nature and the other is corrective actions. Rework due to the new requirements falls into the corrective category and a formal change request has to be raised that takes into account the various parameters like changes to the cost and the time.
This is also known as defective repair. In the context of the automation tool, it would mean that the deliverables have not been found satisfactory during testing. The rework has to be fit into the existing schedule as the project charter specifies timely delivery and hence any change to the schedule would involve changes to the cost of the project.
Any change requests should go in through an integrated change management system. All the corrective, preventive and defect repairs are covered here. Any change to the project management plan is covered here.
The following steps have to be taken to accommodate the 20 percent change in the scope
In addition, the project manager has to make sure that:
The one overriding priority is to ensure that the customer’s requests are met without compromising on the internal stakeholders needs. A fine balance has to be struck between the objectives of the internal and the external stakeholders.
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