Managing Project Costs and Budgets

The achievement of successful project delivery is directly underpinned by focus and attention on the effective and efficient management of the financial dynamic. The project environment is uncertain and project teams must operate, not only within this uncertainty, but also subject to multiple constraints. Understanding that a project is subject to a complex series of interfaces between stakeholders and resources becomes critical.

All project activities have a cost, which may be either direct or indirect. They will all impact upon a projects’ budget from the perspective of consumption – i.e. as the project moves through its lifecycle, resources are allocated and utilized and money is spent, the budget therefore is subject to depletion. It is always a difficult question to determine whether or not a project is a success when it is over budget and late, yet the deliverables far outlast the original expectation.