7.3 - Determine Budget

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Process Definition

Determining the budget is more than simply a guess, it brings together all activity costs, contingency reserves, and management reserves, to establish the project budget.  With the baseline set, project management can utilize this information as a measuring stick for activity and overall project performance.

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Figure 17. Determine Budget: Inputs, Tools and Techniques, and Outputs. Reprinted from "A Guide to the Project Management Body of Knowledge (PMBOK Guide), 5th Edition" by Project Management Institute, 2013, p. 208. Copyright 2013 by Project Management Institute, Inc. Reprinted without permission.

Process Assessment

This process begins with defining activity costs.  It would be great if this were the end of the budget process, but as we have all discovered, there is no such thing as one visit to Lowe's or Home Depot.  Something will inevitably cause the activity cost to increase.  Perhaps it is because of lack of experience or detail, either way, the addition of contingency reserves will help establish the work pack estimates, cost baseline, and ultimately the final budget. 

  

ARTIFACTS

  1. Project Schedule: This PMGT 614 group assignment develops the schedule that serves as an input for the Determine Budget Process.
  2. Cost Aggregation: This PMGT 612 assignment looks at cost aggregation as a technique in the Determine Budget Process.
  3. Cost BaselineThis PMGT 611 group assignment presents the cost baseline as an output to the Determine Budget Process.  Additional information related to cost by activity, organization structure, and communication plan are also included.

 

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