Budgeting For a Project by Netserver Africa

Budgeting in your project by Netserver Africa

In project management, a basic idea to success is implementing a successful budget plan.

First steps in setting a budget involve:

  • Identifying the different elements of a project budget
  • Understanding the difference between an estimate, a budget and budgeting

The project manager is concerned solely with the ‘internal costs, purchases and reserves’ section of the budget.

Below are traps to avoid in estimating a budget:

  • Being over-precise when the needed information is not available for accurate estimates.
  • Under-estimating through a lack of understanding of the target or by submitting to target pressures.
  • Over-estimating through a lack of knowledge of the area in question (by adding margins)

Managing project costs enables the project manager to:

  • Evaluate tasks/project costs in advance
  • Estimate tasks/project costs at every stage of the project
  • Involve the project participants in the estimating process, ensuring a more reliable outcome
  • Provide decision-makers with all the information they need to make transparent decisions