In this section of the project scope document, you'll be talking about the budget, or the planned allocation of resources and funds anticipated to cover the course of the project. Of course, project teams usually work under budget constraints. Recall that generally the project sponsor is the one who approves the budget and authorizes the use of those resources, but not necessarily the one who builds the budget. The project manager is responsible for assimilating the necessary budget information from the various stakeholders into a single project budget, then presenting it in the form of the scope document. Therefore, it is singularly important that you determine the various players involved in helping to make the project work its way successfully toward completion, identify the costs relative to each entity participating in the project, and produce a summary document that explains each group's costs in the project as well as the total cost. Include hardware, software, development time, and consulting dollars, and try to ascertain hidden costs that may put the budget over its predicted number—things such as the cost a delay in the project might introduce, or legal fees. All of these numbers should be seen and agreed to by the project sponsor.
Tip Note that budgets have an unusual way of being tampered with. One group might siphon off some of your project budget for a project of their own. This kind of "stakeholder sabotage" is something that routinely takes place in business.
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.