Slide OK no change

1. 1 Slide OK no change

2. 2 Please change “What should the project management budget be?” Done • Please add final bullet • Understand the risks of budgeting PM as a % of project costs and recognize the importance of developing the PM budget based on the project management tasks required • Done

3. 3 Slide OK no change

4. 4 Please add text to this box … more about the PIC-PM model and budgeting for PM time Done Please add this to the last paragraph Refine and assign the PIC-PM allocations at Project Set Up. Be clear with your PIC on their budget allocation. As the relationship develops be prepared to adjust the budgets accordingly. If it will not fit due to word limits, please tell me and I will adjust text in Project Leadership call out box Done Please delete this supporting document. Mark has this covered in a new module Approach to PM at ERM: PIC-PM Model Done Please add the text below to each of the call out boxes. I think it would look good if you put the next text in a different colour – not red. Done suggested changes along with the text colour to green. Identify early if you will require support from the ERM Organization and make allowance for PIC/PM time in working with them. Depending on the BU, the ERM Organization support may be an Overhead, but remember the more Overhead you can recover on your project, the higher your BU RONR. Look for opportunities to recover their time. Plan ahead and if possible build their costs into your proposal. • At the Proposal stage be CLEAR on how and when we will report to the Client. For example: • number of meetings • reporting and invoicing procedures • communications with the Client’s team (other consultants). • Verify these at the Client Kick Off meeting The size and complexity of your project team will determine the amount of PM Budget you require to manage that team. The slides in this module explore the different variables you need to consider when budget PM for managing the team resources. Identify at the Proposal stage if you will require ERM Functional Support and make allowance for PIC/PM time in working with them and complying with the relevant ERM procedures (including any expenses). Where possible incorporate or make allowance for ERM Functional Support support in your Proposal. Budgeting for their support in your project will reduce our Overhead and improve the BU RONR. Be CLEAR on the budget for the PIC, discuss and agree this with them. Consider setting up a separate code. Agree their role on reporting, Client meetings, invoicing, H&S and Technical Review.

5. Please delete this slide from Budgeting PM. 5 Take the 1st line and use it on the next slide BUT do not loose the slide you are going to need it for the Communication module. Done and let us know in communication module where we need to add. This slide

6. 6 Please insert one line of text from the previous slide into this one. This text then becomes the introductory line On some projects the PM may require support from others to help deliver the project management duties. Done

7. 7 Slide OK no change

8. 8 Please can you change two icons they have been changed on the PM@ERM page and this module needs to align. I hope that the replacement icons are of the same quality as the ones I sent you and have the same grey background. If not please advise me immediately, send me a screen shot and I will send on to Janet Austin. The files are attached to the email Done Additional text to be added to Safety Management Consider if the project is desk based only or if site visits are required. Also consider if work is overseas where ERM does not have a registered business presence. Allow for appropriate journey management plans depending on the country visited and HASPs appropriate for the work being undertaken. Done

9. 9 Slide OK no change

10. NEW New Slide Please Title How much is enough? Having considered the PIC-PM relationship, PM’s responsibilities, PM support Team and different project characteristics, we return to the question “What should the project management budget be?”As illustrated in the slides you have just reviewed there is no simple rule or percentage as ‘the answer depends’ on a number of project variables. The next set of slides will explore these and other variables a PM must consider when establishing a budget for PM and their relationship of these variables to one another. Although we use a percentage in some of the examples this is for illustrative purposes only; the PM budget needs to be developed with the same diligence as we develop budgets for technical work or Subcontractor input. Done

11. NEW New Slide Please Title Checklist for Estimating Project Management Effort A checklist for estimating Project Management Effort can be found on the PM@ERM site in the Toolkit. Develop Proposal and Estimating. A link is provided below. The purpose of the checklist is to provide assistance to the proposal team during the Opportunity Phase and to the PM during the Planning Phase on identifying and estimating scopes of work associated with project management activities. This includes, but is not limited to, activities such as contract administration, training, quality assurance, safety management, document management, project controls, logistical support, travel, meals, and project management (e.g., planning, monitoring, controlling) that must be accounted for in the project scope, risks, costs, and schedule. This checklist for estimating project management activities includes activities that are typically performed for larger projects. The appropriateness of each item on the list will vary depending on the complexity, size and duration of a project. Adele/Elaine can we provide a link from the module to the Minerva page? https://minerva.erm.com/support/Project%20Management/PMTool/Shared%20Documents/Forms/Develop%20Proposal%20and%20Estimating%20Scope%20%20Schedule%20Budget.aspx Done Elaine/Adele asper the Minerva page I have copied page title and provided hyperlink for the title please validate and provide your feedback.

12. NEW New Slide Please Title Developing the PM Budget • The next series of slides provides an example of how to break down the project management activities (the Work Breakdown Structure – WBS)and use this breakdown to then build up the project management budget. • The project example is made up as follows: • Scope – Preparation of a report • Data collection and site visits (overseas) • Meetings with client team • Report with one draft submission • Specialist subcontractor input required • Schedule - The project has a 12 week duration • Final deliverable in week 11 • Budget (excluding PM) of $130,000 • $100,00 of ERM technical Labour • $25,000 Subcontractor (including mark up and contingency) • $5,000 for expenses (including mark up). • Assumed PM rate of $137/ hour Example Work Breakdown Structure (WBS) Project Management Activities In this example we have grouped the PM activities to help differentiate between the costs for general PM duties (Core) those that are common to all projects; and other activities (Additional) that are bespoke to each project. Done

13. NEW New Slide Please Title Developing the PM Budget • This slide provides an example of a Project Management WBS and how this is used to build up the project management budget. • In this example a total of 142 hours have been budgeted for the PM. • Core Activities - 95hrs • Additional Activities - 47hrs • Roll over the notes to read more about issues to consider when budgeting each of the activities in the Project Management WBS. Click the icon below if you would like to download an excel version of this worksheet and supporting notes. Done

14. Call out text 1 of 2 for New Slide Developing the PM Budget NEW When developing the forecast check the reporting/billing cycle. Are you using ERM’s cycle or the Client cycle? Forecasting and billing must be aligned to the agreed cycle. Set up. Set up in GMS, Briefing the team, Client kick off meeting, Forecast depends on Client requirements. If they have specific requires for Project Plan, Quality Plan, Schedule (e.g. MS Project), Forecasting, Risk Register, Change Orders and invoicing it will take longer to set up. PM weekly input. Example only - Assume 4-7hrs/week. In this example forecast does not include PIC time. Reduce as appropriate for National Holiday periods. Weekly actions - review of ERM time accrued, compare to % technical complete, hold sub team calls, brief PIC, ad-hoc communications with Client, prepare change orders (Note make sure the time you accrue preparing any change orders gets built into the new quote) PM monthly review. Example only allow 4-5hr at the end of the month. In this example it does not include PIC time. Review GMS for ERM time compare to % technical complete reforecast spend, hold team call, and PIC briefing (more in-depth than weekly). Prepare Client progress report (work completed, work planned next month and following month, update schedule , summarise all Change Orders, include simple risk register) hold Client progress meeting (by phone). Prepare invoices, chase payments. Close out. Final invoices and recovery, final Client meeting, prepare project description and recording lessons learned. REMEMBER. If your contract is 12 weeks, you are going to need to keep some time back for close out as invoice payment and chase up could run on for another 14 to 60 days! Keep this period short and improve your DSO. Core PM Activities. In this example you can see how the PM has been ‘front loaded’ with 42% for the total Core PM budget occurring in the first 4 weeks. Effective planning at the start will help manage project Risk. Add up your forecast for weekly and monthly input - does this seem reasonable?. Is there enough for weekly reviews (remember some months have 5 weeks and others 4), monthly reviews, preparing invoices to Client, monthly call/progress report for Client. Estimates above are for a simple reporting process. If Client requires specific schedule (e.g. MS Project) forecasting, specific Change Order Process, preparation of Risk Registers etc. then allow more. Done

15. Call out text 2 of 2 for New Slide Developing the PM Budget NEW Additional Activities. Budget, forecast and set up these activities in GMS separately to the Core PM activities. Managing change and justifying change to your Client is easier to do if they are defined work items set up and manged separately in GMS. Health & Safety. Block in the weeks where you will incur the H&S costs. Are they at the beginning, or the weeks leading into site work. Is it a discrete activity or will you need to keep on top of this during the following weeks? Budget this separately to Core PM activities. Price for ERM processes but check does the Client require more? Technical Review. Block in the weeks for planned reviews. How many internal and Client reviews are you planning? Budget this separately to Core PM activities.Price for ERM review processes but check on Client requirements, number of reviews and time for review? In our Proposal make sure that payment is not dependant on Client acceptance of a report. Subcontractors. Block in the weeks for setting up and managing subcontractors. Price this separately, OR if subcontractors linked to specific topics possibly add to that activity. Cost for managing through ERM Global Contractor Management System, obtaining quotes (ideally this should have been done in the proposal) setting up contract (and any Legal support). Price for managing the subcontractor and processing their invoices, closeout meeting and lessons learned. Done

16. NEW New Slide Please Title Developing the PM Budget In the two tables below we examine the impact of changing the proposed Project Manager on project profitability and deliverability. Assuming that the PM activities will require 142 hours of effort, regardless of the skills and experience of the PM, compare the PM costs and impact on Total Project Cost for different rates. The effort remains the same but the percentage and Total PM budget increases or decreases depending on the rate used for the PM. Unless you secure a Change Order to increase the PM budget, a higher cost PM could result in a –vevariance and reduced project profits. In this table we assume that the PIC set the PM budget and works with the new PM to reforecast the available hours for the PM to manage the project. Reducing the available PM hours without a change in the project scope can lead to inadequate project management or the PM working non chargeable hours or worse not booking their time. Done

17. 10 Change text please As explained on previous slides the budget for the project management activities should be developed with the same diligence as we develop budgets for technical work or Subcontractor input. However, in this example we explore estimating project management budgets based on a percentage of the labour and total budget. Should you chose to budget by percentage, you should then convert this to actual hours and check that you have enough time to perform the specific tasks for your project. Please move this text into the call out box as the first paragraph Please delete the first line and add text from slide. Consider the difference in project management hours and budget for each option and the impact this could have on winning the work and delivering the project. Please amend the next line. We have presented three ways of estimating the project management budget as a percentage for the same project… Done

18. 11 Please change title Project Size (Budget) Please replace the text In the examples below we consider four projects with different budgets and explore the impact of applying a common percentage for project management to each project. Assuming the project management budget was estimated based on 10% of the project budget, and a common rate/hr was used for a project manager, calculate the available project management hours for each project. Done

19. 12 Please change title Project Duration Please replace the text On the previous slide we looked at applying a common percentage for project management to four projects of different sizes (budgets). In the example below, using the % project management budgets from the last slide, we explore the impact of different durations on estimating the budget for project management. Done

20. 13 Please insert new text. On the previous two slides we considered size (budget) and duration (weeks/months). On this slide the budget ($130,000) and duration (3 months) are common but the complexity varies. exercise, for a project budget of $130,000, we budgeted for 90hrs of project management time : Done

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24. Slide deleted and additional text added to slide 8 17 Done

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26. 19 Slide OK no change