Be able to recognize the differences between a topdown and a bottomup budget

Top-down utilizes both assumptions and estimating and involves you being given a pre-limited amount of money with which you can develop your project. The leading constraint is the money. Bottom-up budgeting doesn' t necessarily recognize money as the leading constraint (though it may well be) and allows you the luxury of developing tasks according to your best predictions, then getting the money required after the cost-estimating function is done.

Understand that estimates include materials, time, and human effort and that various estimating components are affected by these areas. The project ' s scope, resource skill levels, resource availability, task requirements, elapsed time, and reconciliation are all affected by different estimations revolving around these three things. Recognize that good communication plays a very important role in successful project completion. Understand that schedule changes, resource losses, personality clashes, low morale, budget changes, organizational changes, and project phase completions are all areas in which you' l l communicate with one party or another. The way in which you communicate will have great bearing on whether and how the news is heard.

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