Budgeting Basics
The term for allocating funds to different project phases or tasks.
What is budget allocation?
The practice of predicting future project costs.
What is cost forecasting?
If a deliverable is delayed due to unexpected internal challenges, this should be adjusted to reflect additional time and resources.
What is the project budget allocation?
When this starts to happen, it's important to assess whether additional approvals or adjustments to the project scope are necessary.
What is scope creep?
A financial document that outlines expected revenue and expenses for a project.
What is a project budget plan?
This is commonly used for tracking project cost projections over time.
What is earned value management?
What is a change order?
One way a project manager can prevent scope creep and budget overruns.
What is defining the scope (budget) and deliverables clearly and ensuring they are understood by all resources at kickoff?
A method to improve project profitability without increasing costs.
How much time we estimate per spread for a multi-page booklet.
What is 2 hours per page?
How I can use Kantata to help adjust forecasts.
A fixed reference point that represents the initial planned scope, schedule, and cost of a project, acting as a benchmark to compare the project's actual performance against as it progresses over time.
What is a baseline?
By inputting this requested report in Kantata on a regular basis, the project manager can provide the leadership team with metrics on pace, execution and resource health.
What is project health?
One-way to ensure long-term profitability in project-based work.
What is pricing projects based on value, not just cost?
Percentage of a project budget that is typically reserved for contingencies.
What is 10-20%
How often financial forecasts should be updated in a project.
What is monthly or at major project milestones?
An at a glance place in Kantata to view EAC (estimate at completion) for your project based on time-tracked, fixed fees and projected spend based on your remaining schedule.
What is the Overview tab in your project dashboard?
These are the top strategies for de-risking projects.
What is establishing realistic goals (realistic due dates, utilization of available team members, budget that takes into account all costs), proactively identifying potential risks (everything from budget constraints to unusual customer demands) at project initiation, developing a detailed project plan and allocating resources effectively.
A method of maximizing value early on in a project by focusing on the most critical project deliverables first.
What is prioritizing deliverables?