PM - Prof. Eliud Peterson


PM3110: Module 4 Cost Estimation and Budgeting

Exercise 4.1

Identifying Requirements


Imagine you were developing a software package for your company’s intranet. From the items you feel

would be required for the project, sort the items into labor, materials, equipment and facilities,

subcontracts, and so on. Identify two more requirements that are not listed.

 Labor: Is the amount of work that it will take to complete the project, typically listed in days, weeks,

or hours.

 Materials: Is anything that you need to complete the job that is not a resource and equipment or

facility. An example of this would be the creation of training material.

 Equipment and facilities: These are items that are typically purchased and depreciated. For

example, many times, computers and other higher cost equipment are purchased and then

depreciated over years. In terms of facilities, you need to ensure that your staff has room to work,

and if there are any trainings required, there is room to accommodate.

 Subcontractors: Many times, organizations do not have the expertise or work force to complete

certain tasks. In this case, subcontractors are hired to complete the tasks assigned. In this case,

assume that your company needs to hire subcontractors to assist in building the software package.

Submission Requirements:

Submit your responses in a Microsoft Word document of the following specifications:

 Font: Arial, Size: 12 point

 Length: 1–2 pages

 Line Spacing: Double

Evaluation Criteria:

The Exercise rubric will be used to evaluate this assessment. In addition to the rubric, you will be evaluated

on the following points:

 Did you include a list of requirements to complete the project?

 Did you sort the items accurately?

 Did you include two more requirements that were not shared in the list?