- Outline a start date and end date of your project spending plan;
Designate the whole period during which you are going to spend project money.
- Base your project spending plan upon needs of the project performance;
List everything you need to supply to the process in order to complete essential activities.
- Build your project timeline (schedule) to show allocation of tasks and activities over the time;
Associate your tasks with their positions on the project’s baseline schedule.
- Divide the project schedule into expenditure periods;
These periods can coincide with essential project phases.
- Calculate amounts of necessary utilities and supplies to be delivered into the project;
- Estimate costs of buying raw materials to be delivered into working process.
- Estimate every task in terms of associated overhead expenses (such as energy).
- Plan compensations for involved labour, by projecting them for every task;
Estimate how much you will need to pay out to workers that implement planned tasks.
- Calculate costs of administrative and overhead expenses associated with each period;
It could include rent of equipment and premises, services of consultants and contractors, etc.
- Finalize Project Budget document and request managerial verification of it;
- Determine project’s funding over the time (structuring and release conditions of project budget);
Learn planned amounts accessible to project’s use at every specific point of schedule.
- Make sure the amount of available budgeting suits planned expenditures at every point of time;
You need to ensure that you will have money at hands and there is no serious deficit in plan, so you need to check how reasonable the budget is sourced. Avoid unreliable sources of income.
- Schedule expenditures as they are expected during the life cycle of the project;
Build a schedule of spending, where it is shown how the budget will be spent during the project.
- Define amount of spending in each budgeted category for every period;
Summarize spending by categories to analyze allocation of project costs.
- Create Budget Worksheets for the PM per every period/phase/task of project development;
A budget worksheet is a simplest tool for projecting expenditures, recording actual values, and comparing them to derive the difference between planned and actual costs.
- Once the project is in work, continually track accumulation of costs in each category;
Accurately control how the costs are accumulated, anticipate tendencies and adjust future costs to balance the budget and avoid overrun (or request additional funding to cover deficit).
- Build a graph that shows the cumulative planned ...