COST BREAKDOWN STRUCTURE AND BUDGET¶

The work package costs can be grouped into costs per sub-project [15] and the costs per sub-project can be grouped into project costs.

All cost blocks for staff, raw materials and supplies, power consumption, rents, supplies, external suppliers, travel and hotel expenses etc. are then covered.

The result provides a clear idea of expected costs.

Now it is necessary to compare the value calculated with

• the cost value calculated in the phase model and
• the cost model in the project objective chart.

Is there float time?
Always ensure that there is float time in a project because project managers who have plenty of leeway and who are not under pressure of time will deliver better results!

Do you have problems controlling costs?
You can call in the steering committee and clarify the budget issue with the customer (in projects where the main priorities are deadlines and/ or quality) or reduce the scope of performance (in projects where the main priority is deadlines and/ or costs).

A preliminary budget can be included in the business planning for the cost breakdown structure that has now been established.

Procedures when the budget has been fixed
Now it's time to prepare the process and time schedules.