Your first
job as a Project Manager is to ask your Sponsor
"So how long have I got and what's the budget?” Your next job is often to ask for more time and money to
boost your chances in succeeding.
You can do
this by writing a Business Case, Feasibility Study and Project Charter to show
your Project Sponsor that you will need more money than that identified to
date, to meet the project objectives. When you have agreed on an amount that
you believe is adequate, ask them to "fix this amount as a budget, but
make available another 10-20% as contingency".
That way, your budget isn't fixed in concrete.
Right at
the outset; create a Financial Plan so that you have a detailed view of all of
the expenses that are going to arise and when they will be incurred. If you
haven't done it already, complete a Project Plan so that you know the cost of
every task to be completed.
From the
minute you’ve set the budget, you need to start recording the actual cost of
the project. This includes the actual cost of your time, your staff,
contractors, equipment and materials. If you're using internal staff, then
assign a standard rate to the hourly cost of these resources and ask them to
complete a
Timesheet
so you know how many hours they are spending on the project.
