project management Money management

 

 

 

Managing money in projects

budget

At the start of every project there has to be some sort of budget to be able to get the results a client wants. Managing this budget is an important part of project management, and one of the most delicate ones in many projects. Money management starts by formalizing a complete and clear budget so both projectmanager and client can have an understanding about the project. This budget has to get from the client and should be available when the project starts.

When money is needed to invest, you can't have a delay just because finances are not in place. The way you have to monitor expeces and justiy any investment you do within the project can be different in every project. But the resonsability that comes with project management and the trust you get to make every penny worth it's while in a project is always yours.

 

Budget setup

When you draw out a budget for a project you need to be clear about a few things, and have to be able to make it as complete as possible. You also have to make an effort to inform the client well about specific costs that are not calculated yet if this is not possible at a certain (early) time. When it comes to money management, no one want unpleasant surprises.

A summary of the things to think about when setting up the project budget are:

 

 

Budget management and project phasing

The budget setup you make at the beginning of a project (in your projectplan), should get more detailed as phases progress. The content of the project gets clearer as you pass on, and some unexpected occurences might happen in a cetain phase. It is the job of the project manager to update the budget calculations accordingly, and discuss this with the client. The client needs to get accurate information and may need to make some disicions if the budget calculations changes, either positive or negative.


 

 

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