How to Keep the Project’s Budget Under Control
By Jackson Bruno
Project Managers are faced with the pressures of keeping the project’s budget under control. This pressure is the result of organizations having a real need to deliver projects that are successful, and ‘Cost’ is just one of the many constraints that need to be monitored closely.
As a first step, it is important for Project Managers to actively participate in the process of determining a budget for the project, ensuring that all budgetary items have been covered (e.g. equipment, man hours, consultants, etc.) and that these items have been allocated properly.
A few more steps pertaining to a project’s budget must be taken to ensure a successful delivery.
- Project Managers must create financial models that compare the amount of work that has been completed against expenditures, and most importantly, a model that can forecast the future cost based on the inputs that the Project Manager is receiving from team members.