Engineering Consulting Project Budget Allocation and Cost Control Model Based on Baseline Productivity

Abstract

This study developed an engineering consulting project budget allocation and control model based on baseline productivity of staff of various positions for each work item. The research model included two modules, namely the staff budget and time budget. The staff budget module determined the working hours and budgets of staff of various positions for each work item of the new project. The time budget module is to plan an implementation period and budget allocation for each work item of the new project. Four findings were inferred from the obtained results. First, the control chart method was an appropriate method for determining the baseline productivity of engineering consulting project. Second, the root mean square error (RMSE) of the staff budget module was 1.99 – 2.81 NT$/m, and the budget allocation results obtained with this module were similar to those produced by experienced project managers. Third, the RMSE of the time budget module was 2.23%, which is more accurate than are existing practical methods. Fourth, the accuracy of the budget stress index proposed by this study was 81.48%–84.00%. This index can assist project managers in determining projects, work items, and cost control benchmarks for staff working at various positions.