4.2 ANNUALIZED COST OF PM SERVICES
Another key question this research wanted to explore was the cost of PM services as a
percentage of total project cost. These costs were computed as a percentage of a company or
department’s project-based revenues or sales. A list of items that are classified as a PM related
expenditure was developed by us and provided to the company managers to help them
more accurately and consistently estimate the average cost of PM services in the organization.
There are instances, of course, where other items should be included. Admittedly this question
is difficult to answer precisely. Exhibit 3 presents a checklist of PM expenditures.