Why is a cost management plan important?  How does the plan benefit the project manager

Budget Estimating (100 points)
This assignment consists of 2 parts: questions about budget estimation and developing a budget.
Part 1 Questions (10 points)
Provide responses to the following questions
1.    You are providing a review of contractor bids for a component of your upcoming project.  What can be done to determine whether or not a vendor’s bid is reasonable?
2.    Describe the conditions for which parametric, analogous and bottom up estimation techniques work best, and provide 2 examples in support of each method.
3.    Why is a cost management plan important?  How does the plan benefit the project manager?
Part 2 Budget Estimating (30 points)
Using the same scenario from the previous unit on scheduling, create a time-phased budget for the following project.  Prepare a figure like Exhibit 10.9, CPT 4e, that illustrates the daily and cumulative costs for the resource-leveled project.
Assume the following hourly rates:
Alcides $45 / hr.
Joan $50 / hr.
Part 3 Budget Estimating (50 points)
You are the project manager for a process improvement project for Company XYZ.    Prepare a figure like Exhibit 10.9 that illustrates the weekly and cumulative costs for the resource-leveled project.
Hint: To accomplish this exercise, you’ll need to create a project schedule in MS Excel (or by hand), create resource assignments, assign costs to each resource, and assign the resources to each task.  Some resource leveling will be required.
In this project, you have 3 employees: Ann, Becky and Clive.  Each person is limited to the amount of time allocated to your project.  Ann and Becky are available 30 hours/week; Clive is available 20 hours/week.  There hourly rates are: Ann: $60/hour; Becky: $35/hour; and Clive: $50/hour.