Determining the Project Budget

In this chapter

  • Understand why the project budget is important to project success
  • Review the process for figuring a realistic budget
  • Learn the key project budgeting principles
  • Understand the common mistakes people make when building a project budget

It's one of the key success factors for projectscompleting the project within budget. Yet, for many project managers, especially those managing internal projects, it's the success factor they have the least awareness about. There are several reasons why this occurs, and it does vary by industry, but most of the reasons have to do with organizational management structures and organizational budgeting and cost controlling policies.

For our purposes, in this age of increased accountability of project investment decisions, we will assume you need to establish a project budget and will need to track costs to it as the project is executed.

Since this an introductory project management book, we will avoid any discussion of advanced financial topics and instead will put our focus on the "need to know" fundamentals for figuring your project budget. In this chapter, we will emphasize the importance of the project budget, review the process and key principles for developing a realistic budget, and highlight the areas where people often go astray. This will lead to a budget that has credibility with your stakeholders and that provides you with the foundation to effectively track project costs and manage project execution.

Part i. Project Management Jumpstart

Project Management Overview

The Project Manager

Essential Elements for any Successful Project

Part ii. Project Planning

Defining a Project

Planning a Project

Developing the Work Breakdown Structure

Estimating the Work

Developing the Project Schedule

Determining the Project Budget

Part iii. Project Control

Controlling a Project

Managing Project Changes

Managing Project Deliverables

Managing Project Issues

Managing Project Risks

Managing Project Quality

Part iv. Project Execution

Leading a Project

Managing Project Communications

Managing Expectations

Keys to Better Project Team Performance

Managing Differences

Managing Vendors

Ending a Project

Absolute Beginner[ap]s Guide to Project Management
Absolute Beginner[ap]s Guide to Project Management
ISBN: 078973821X
Year: 2006
Pages: 169 © 2008-2020.
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