It is time to estimate your project’s budget. Your project sponsor has set a limit on...

It is time to estimate your project’s budget. Your project sponsor has set a limit on the amount of money you can spend. You know your budget will exceed that limit. Using the information covered in the required readings, describe the importance of properly establishing a project budget. What is the best method or methods to accurately estimate the budget for a unique project? What controls can you implement to keep your budget in check?

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Expert Solution

It is crucial to establish a project budget because it sets clear criteria when defining the aims of a project. A project should be able to accomplish what is required within its scope, and a budget seeks to prevent misallocating the money, which allows the funds to be channeled to the right level of project work.

An implemented budged aids the future planning process; Additionally, cost planning plays a vital role in ensuring the project manager can know how to minimize costs to ensure the project is successful, both before and after completion. Essentially, a project is finished by realizing how much money can be spent during the development of the project.

Budgeting also aids with the cost estimating process, as all of the project elements receive costs that can be handled based upon the planned budget. The cost estimate can assist with assessing the success of a project.

Implementing a proper budgeting process will also test the efficiency of a project, the time it takes, and the execution of duties. Ultimately, this is because it would have provided enough money or financial support required to complete the project.

Some controls that you can implement to keep the budget in check include resource usage, time management, management participation, and provision of information. Resource utilization should consist only of what is outlined within the budget. The time the contractor has taken to complete the phases of the project should also be taken into consideration – each step of the project mustn't waste money. Management should adequately participate in the budgeting process so that they have an understanding of where money can be allocated. Details should consistently be provided for spending throughout the life of the project.

keosha answered 1 year ago

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