how much is enough?
This article discusses the issue of determining the amount of project management which is appropriate for particular projects. The smallest projects are defined as having a total installed cost (TIC) of $100, 000 or less; medium-sized projects range from $100,000 to $1 million; and the largest projects are in the range of $1- $10 million TIC. Generally speaking, the larger the project is, the smaller the project management costs will be as a percentage of the total. Based on the size estimates given, the article notes that project management costs for all phases of a project generally total somewhere between 7-11 percent of the project’s TIC. If project controls support is added, project management costs will be in the 9-15 percent range--estimates that fall in line with noted authorities such as Kerzner (Project Management: A Systems Approach to Planning, Scheduling, and Controlling. 1998)Project managers in small projects will have difficulty adhering strictly to their project management role, but the level of project management costs should be held to a minimum. A larger degree of project management can be justified for medium-sized projects, and the largest amount of project management should be applied to large projects where the stakes rise along with the project's complexity and risk.