Running head: Contingency Reserves and Cost Evaluation
It is the duty of the Project Manager on a position to be able to make sure that the project is performing within the boundaries set forth at inception. The cost estimation is an important step in the process of gathering the required funds to start a project and the continuing evaluation of the costs are must be kept in check.
One of the most important roles of a Project Manager is to be able to manage the ongoing costs of a project. The project is bid and purchased at a certain cost to the company. As the project is moving forward there will be ongoing costs associated with the price of doing business. The way to manage these costs is for the project manager to continuously monitor the rising costs and evaluate if the costs are allocated correctly.
Northeast Electrical Distributors
The company that would greatly benefit from valuing cost estimations and contingency reserves is the company that I currently work for as a project manager. The term project manager is a loose term that is used there, as I go throughout the courses at University of Phoenix I am seeing that I really cannot identify with the points being learned because in the twenty-five years I have been a project manager I have never been faced with the issues that I am learning about. Northeast Electrical Distributors is a company that employees approximately 1,000 people in the Northeastern region of the United States, the primary focus of the company is electrical distribution and retail or counter service. The main money maker for the company is the electrical projects that are sold to local electrical contractors by the sales force at Northeast.
Project Life Cycle
The project life cycle at Northeast is one that is unique and most professional project managers would not understand until they got into the meat of the business. Dependent upon the sales person you work with as to how...