5 Tips for Delivering Under Budget

Every project has a budget. It is one of those things that makes a “project” a project.
The challenge for a Project Manager is often that by the time they are assigned to a project, the budget has already been set and the Project Manager does not have any real “say” in the matter. So how to can you manage your project within budget, when you have not created the budget in the first place? Here’s how…


Tip 1: Revise the Budget
As soon as you are assigned to a project, make it one of your first jobs to revise the budget set. Is it sufficient, does it include contingency (if so, how much?) and does it account for the size, complexity and risk of the project? Challenge your boss immediately if you’re not comfortable with the budget set and explain why you need more money if it’s required. If they say “no” then at least you’ve raised it upfront.
A Project Charter is like an architectural drawing for a building project. It tells the builder what the end result is going to look like, so the client knows what they will receive and the project manager knows what has to be delivered and by when.
It helps you to direct your team towards the end goal, so everyone is on the same page.
Tip 2: Create a Financial Plan
Then, create a project plan and calculate the forecast cost of every task ahead. Use software to do this, as Microsoft Excel spreadsheets will quickly get out of hand.
Tip 3: Baseline the Plan
Then baseline your plan, which means saving a copy so that you can compare the actual expense of the project day today, to the original plan set.
Tip 4: Track Progress Daily
Every day, you need to calculate the total cost of the project vs. the total budget set. If you use online software to do this, then you can see in a graphical dashboard a task which tells you whether you are under budget or over budget at every step in the journey. Because it’s online, you can view the status of your project real-time.
Tip 5: Get Serious
If you notice that you’re consistently running over budget each week, then you may need to immediately stop and take action. This may include; informing your boss, asking for a larger budget (and justifying the reason for it) reducing the scope of the project or trimming expenses and trying to do more with less.

As you’ve probably realized already, the key to success is having software which tells you every day at a glance whether you are currently under or over budget.
Great decisions are based on great information. Use Project Software to get the right information for your projects, at the right time like ProjectManager.com