Controlling what it costs.
WHAT TO ESTABLISH AT THE START
What the project may cost What that covers Who approves spending What happens if it is exceeded
WHAT TO BUILD THE BUDGET FROM
The task breakdown.
WHAT COSTS TO INCLUDE
People's time, whether or not it is invoiced Suppliers and contractors Equipment and licences Contingency
WHY INTERNAL TIME COUNTS
It is the largest cost in most projects, and ignoring it makes projects look cheaper than they are.
HOW TO VALUE IT
A day rate per person, applied to estimated days.
WHAT CONTINGENCY IS FOR
Risks that materialise.
HOW MUCH
Proportionate to uncertainty.
WHO SHOULD CONTROL IT
The project owner, released deliberately rather than absorbed quietly.
WHAT TO TRACK
Committed against spent against remaining.
WHY COMMITTED MATTERS
Money promised but not yet paid is gone.
WHAT TO WATCH
Spending ahead of progress.
WHAT THAT INDICATES
The estimate was wrong, or work is being done inefficiently.
WHAT TO REPORT
Forecast at completion, not only spending to date.
WHY
It is the number that lets someone act.
WHAT TO DO WHEN IT WILL EXCEED BUDGET
Raise it immediately, with options.
WHAT TO AVOID
Discovering an overrun at the end Hiding it by deferring costs
WHAT TO RECORD AT CLOSE
Actual cost against estimate, and why they differed.
