In the Project Management Essentials class the instructor stated that the PM cost is usually up to 30% depending on the size of the project. Saving Changes...
We generally estimate 10% of the total project engineering effort to be the Project Management effort and I have seen that this is pretty realistic Saving Changes...
The answer isn't as simple as all that, unfortunately.
10% is a vey low ratio that would apply, in my experience of examining more than 300 projects in the last five years, only to very large projects.
The scale deteriorates, i.e. gets larger, as the project scale decreases. I had a colleague report to me that he recently ran a small scale project where the PM overheads were 50% of the total cost of the project.
It also depends, I guess, on a couple of other factors: (1) Are you factoring dollar cost or just days/hours effort into the budget; (2) Are you factoring procurement into the PM costs. We would recognise, capital expenditure projects often have a high procurement management component.
Regards
David Hudson, Brisbane, Australia Saving Changes...
