Question

86). How do changes in the original scope impact the budget and do they always? If they don't always please explain why.

Answer 1

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The budget is determined by what is needed to be done, within what time frame and what level of quality is expected. Any change in these three leads to a change in the budget. When the scope changes and more amount of work is needed to be delivered within the same time, it increases the cost, for example, additional resources may be needed to be deployed. Thus scope change leads to a change in the budget.

However, if the scope change is compensated by an adjustment in time and/or quality, then it may not lead to a change in the budget. For example, lets say one person one high-quality service or two low-quality service in a month. Suppose the client asked for one high-quality service and accordingly quotation was submitted. If the client now comes and asks for two services instead on one and is willing to accept low quality, the budget will remain unchanged