Week 5 - Resourcing and Budgeting
Week 5 - Resourcing and Budgeting
Week 5 - Resourcing and Budgeting
5.1. Introduction
The week's main topic is project budgeting. A project's budget is nothing more than the
total anticipated costs required to accomplish the project within a specified time frame. It
includes items like labor expenses, material procurement prices, and operating costs and provides
an estimate of project costs for each stage of the project. Budgets for projects must be evaluated
and adjusted as needed because they are dynamic.
Projects have a lot of resources. Money is one of their main assets. The foundation of a
project's funding is its budget. They explain to the project team and other interested parties how
much money is required to finish the project, why it is necessary, and when it is necessary. Budgets
are tools for controlling project expenditures in addition to serving as a blueprint for the resources
required for a project. The project budget is a strategy for project management and serves as a
benchmark to gauge performance once real expenses have been tallied for the project.
Travelling spending Anyone who travels from one location to another to do project
work (including budget for meals and lodging)
Training fees Conferences, workshops, outside contractors
Material resources All the items your team might need to perform the work,
including software, equipment, or other unique materials
Research expenses Studies or data to support your project and deliver the best value
Contingency reserves Contingency funds to allow for flexibility and reduce risks of
budget overruns, usually 5-10% of the budget
Source: https://www.forecast.app/blog/how-to-create-a-project-budget
Some of the above costs, such as training costs to teach users to use a product or
maintenance costs, are often overlooked by project managers, so it is important to be proactive if
there are costs related to the project that will come up once it is complete.