Introduction to project management/IPM103/Budget/Overview

Budgeting

“	Every project boils down to money. If you had a bigger budget, you could probably get more people to do your project more quickly and deliver more. That’s why no project plan is complete until you come up with a budget. But no matter whether your project is big or small, and no matter how many resources and activities are in it, the process for figuring out the bottom line is always the same. It is important to come up with detailed estimates for all the project costs. Once this is compiled, you add up the cost estimates into a budget plan. It is now possible to track the project according to that budget while the work is ongoing.	”
—Watt, 2014 p108

Objectives

At the end of this learning pathway you will be able to:

• Prepare a cost estimate
• Describe how to manage a budget
• Utilise earned and planned value calculations to track project progress
• Establish a budget for a project