The Absolute Minimum

At this point, you should have a solid understanding of the following:

• If the other planning activities have been done well, establishing a project budget is a very straightforward process.

• The project budget is vital for managing expectations, accurately measuring project performance, and managing cash flow.

• An effective project budget is time-phased, addresses the complete project lifecycle, and accounts for all project costs.

• The project budget is a critical component of the project plan and integrates the project schedule, resource plan, procurement plan, and risk response plan.

• The WBS, work estimates, and project schedule provide the foundation for a solid project budget.

• Spreadsheet software is usually the best tool to use for project budgeting.

The map in Figure 9.3 summarizes the main points we reviewed in this chapter.

Figure 9.3. Overview of figuring a budget.

[View full size image]

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Figure 9.3. Overview of figuring a budget.

[View full size image]

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Project Management Made Easy

Project Management Made Easy

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.

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