develop

How to Create a Project Budget - Project Management Training



Sharing buttons:

today we're talking about how to create

a project budget and with that I want to

share seven expert tips but first of all

let's clarify what the project budget is

it's the total projected cost to

complete a project during a specific

period of time with a specific result we

want to be sure that we include several

components first of all we want to

include the direct cost directly related

to the project as well as any indirect

cost as well we also want to include

fixed very and variable cost any labor

and materials as well as travel there

may be some travel related expenses we

need to include as well as equipment we

may need in any space any Lisa leases or

license cost and there may be some other

costs as well but these are just a few

ideas why do we want to create a project

budget anyway because it helps us to

track the budgeted versus actual cost

that gives us a variance that lets us

know in the end or all along the way how

we're doing so let's talk about the

expert tips first of all use historical

data if it exists if you have a similar

project use historical data so you can

compare data so you won't have to start

from scratch also reference lessons

learned you want to be sure not to

repeat those same lessons you can take

that and include it in this project as

well

leverage your experts and that includes

your team members as well so your team

who possibly have done similar projects

can provide input as well as your

stakeholders then confirm the accuracy

once you build your project budget you

want to maybe provide input and have

people look at it to ensure that data is

accurate also baseline once you have

finalized your project budget you want a

baseline and that's what you'll use all

along the project to gauge the variance

the rebase line to me is one of the keys

between a failed and x6

or project if you have changes to the

budget and your change Control Board

approves those then that gives you the

ability to rebase line that budget also

you want to update the budget real time

if there are changes you want to be sure

that that's done on a regular consistent

basis so you're tracking against the

right numbers also get things back on

track as soon as possible

because every little deviation just

compounds the problem so if you need a

tool that can help you create manage and

track your budget then sign up for our

software now at projectmanager.com