12.0 COST MANAGEMENT PLAN

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===12.1 Objectives ===

The purpose of this cost management plan is to define the methodology by which costs associated with the Grow Box Project will be managed. This is necessary to ensure the successful completion of the project within the allotted budget constraints. There are several cost components associated with this project as well as many metrics, cost variance considerations, and reporting which this plan will outline. To complete this project successfully, all key project members and stakeholders must adhere to and work within this cost management plan and the overall project plan it supports.

===12.2 Expected Stability Of The Project ===

Project costs are allocated based on performance objectives defined in the task order. The detailed project plan was developed with these performance objectives in mind. Although the Project manager may adjust the amount allocated for a given performance objective, and ‘turn on’ partial payments for a given performance objective, the total cost is expected to remain stable.

===12.3 Measuring Project Costs ===

Performance of the project will be measured using Earned Value Management. The following four Earned Value metrics will be used to measure to projects cost performance:


 * Schedule Variance (SV)


 * Cost Variance (CV)


 * Schedule Performance Index (SPI)


 * Cost Performance Index (CPI)

If the Schedule Performance Index or Cost Performance Index has a variance of between 0.1 and 0.2 the Project Manager must report the reason for the exception. If the SPI or CPI has a variance of greater than 0.2 the Project Manager must report the reason for the exception and provide management a detailed corrective plan to bring the projects performance back to acceptable levels.

===12.4 Reporting Format ===

Reporting for cost management will be included in the monthly project status report. The Monthly Project Status Report will include a section labeled, “Cost Management”. This section will contain the Earned Value Metrics identified in the previous section. All cost variances outside of the thresholds identified in this Cost Management Plan will be reported on including any corrective actions which are planned. Change Requests which are triggered based upon project cost overruns will be identified and tracked in this report.

===<span lang="EN-US" style="font-size:14.0pt;font-family:"Calibri","sans-serif"; mso-ascii-theme-font:minor-latin;mso-hansi-theme-font:minor-latin;mso-bidi-theme-font:  minor-latin;font-variant:small-caps">12.5 Cost <span lang="EN-US" style="font-size:14.0pt; font-family:"Calibri","sans-serif";mso-ascii-theme-font:minor-latin;mso-hansi-theme-font: minor-latin;mso-bidi-theme-font:minor-latin;font-variant:small-caps"> Variance Response Process === <p style="text-align:justify;line-height:150%"><span lang="EN-US" style="font-size:12.0pt;mso-bidi-font-size:10.0pt;line-height:150%; font-family:"Calibri","sans-serif";mso-ascii-theme-font:minor-latin;mso-hansi-theme-font: minor-latin;mso-bidi-theme-font:minor-latin">The Control Thresholds for this project is a CPI or SPI of less than 0.8 or greater than 1.2. If the project reaches one of these Control Thresholds a Cost Variance Corrective Action Plan is required. The Project Manager will present the Project Sponsor with options for corrective actions within five business days from when the cost variance is first reported. Within three business days from when the Project Sponsor selects a corrective action option, the Project Manager will present the Project Sponsor with a formal Cost Variance Corrective Action Plan. The Cost Variance Corrective Action Plan will detail the actions necessary to bring the project back within budget and the means by which the effectiveness of the actions in the plan will be measured. Upon acceptance of the Cost Variance Corrective Action Plan it will become a part of the project plan and the project will be updated to reflect the corrective actions.

===<span lang="EN-US" style="font-size:14.0pt;font-family:"Calibri","sans-serif"; mso-ascii-theme-font:minor-latin;mso-hansi-theme-font:minor-latin;mso-bidi-theme-font:  minor-latin;font-variant:small-caps">12.6 Cost <span lang="EN-US" style="font-size:14.0pt; font-family:"Calibri","sans-serif";mso-ascii-theme-font:minor-latin;mso-hansi-theme-font: minor-latin;mso-bidi-theme-font:minor-latin;font-variant:small-caps"> Change Control Process === <span lang="EN-US" style="font-size:12.0pt;mso-bidi-font-size: 10.0pt;font-family:"Calibri","sans-serif";mso-ascii-theme-font:minor-latin; mso-hansi-theme-font:minor-latin;mso-bidi-theme-font:minor-latin">The cost change control process will follow the established project change request process. Approvals for project budget/cost changes must be approved by the project sponsor.

===<span lang="EN-US" style="font-size:14.0pt;font-family:"Calibri","sans-serif"; mso-ascii-theme-font:minor-latin;mso-hansi-theme-font:minor-latin;mso-bidi-theme-font:  minor-latin;font-variant:small-caps">12.7 Project Budget ===

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<span lang="EN-US" style="font-size:12.0pt;mso-bidi-font-size: 10.0pt;font-family:"Calibri","sans-serif";mso-ascii-theme-font:minor-latin; mso-hansi-theme-font:minor-latin;mso-bidi-theme-font:minor-latin"> An estimated budget for Project Grow Box taking into consideration the delivery of 100 Grow Boxes @ $TT 360.00 is approximately $TT 36,000.00. This however can be scalable according to the delivery of systems in the community chosen. Additional resources for office and staff expenditure will be approximately $TT 25,000.00 for the duration of the project. =====

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<span lang="EN-US" style="font-size:12.0pt;mso-bidi-font-size: 10.0pt;font-family:"Calibri","sans-serif";mso-ascii-theme-font:minor-latin; mso-hansi-theme-font:minor-latin;mso-bidi-theme-font:minor-latin"> The budget for this project is detailed below. Costs for this Project are presented in various categories.... =====

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<span lang="EN-US" style="font-size:12.0pt;mso-bidi-font-size: 10.0pt;font-family:"Calibri","sans-serif";mso-ascii-theme-font:minor-latin; mso-hansi-theme-font:minor-latin;mso-bidi-theme-font:minor-latin"> Fixed Costs: $ 7,000.00 =====

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<span lang="EN-US" style="font-size:12.0pt;mso-bidi-font-size: 10.0pt;font-family:"Calibri","sans-serif";mso-ascii-theme-font:minor-latin; mso-hansi-theme-font:minor-latin;mso-bidi-theme-font:minor-latin"> Material Costs: $29,000.00 ===== <span lang="EN-US" style="font-size:12.0pt;mso-bidi-font-size: 10.0pt;font-family:"Calibri","sans-serif";mso-ascii-theme-font:minor-latin; mso-hansi-theme-font:minor-latin;mso-bidi-theme-font:minor-latin"> Staff Expenditure: $25,000.00

<span lang="EN-US" style="font-size:12.0pt;mso-bidi-font-size: 10.0pt;font-family:"Calibri","sans-serif";mso-ascii-theme-font:minor-latin; mso-hansi-theme-font:minor-latin;mso-bidi-theme-font:minor-latin"> Management Reserve : $10,000.00

<span lang="EN-US" style="font-size:12.0pt;mso-bidi-font-size: 10.0pt;font-family:"Calibri","sans-serif";mso-ascii-theme-font:minor-latin; mso-hansi-theme-font:minor-latin;mso-bidi-theme-font:minor-latin"> Total Project Costs : $70,000.00

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