No question, the project budget is critical. Customer funding is based on it, project success is derived from how closely you manage to it, and without it you can’t perform any work on the engagement.
Properly pricing the project – properly estimating the costs that go into the project – is critical for any size engagement. Therefore, it’s always a good time to examine and discuss the elements that go into the overall project budget because as a project manager, you may – if you’re lucky – have some influence of the inputs to the project costs and budget. And it’s a certainty that you’ll be responsible for it – even if you had no input at the beginning of the engagement.
For this project budgeting series, let’s examine the key types of costs that go into the project budget.