Budget overruns can occur for numerous reasons, and you need to be ready to recommend and deploy corrections. This video discusses various approaches to correcting a budget overrun before it gets out of hand.
- Just because you still have a credit card,…it doesn't necessarily mean you have funding…to afford to use it.…You might buy that fancy new camper trailer…but have trouble paying for a critical item,…like your car to tow it.…So it goes with projects.…While you still may be spending money,…you might be digging yourself a financial hole.…Projects, by their very nature, are always changing,…so your budget might need to be adjusted…as you move through the project lifecycle.…
In an extreme case, you may find yourself…with a bloated budget.…A bloated budget is when you can see…that your actual spending is coming in way over forecast.…The good news is, if you're still proceeding…with your project, you may be able…to get your budget back on track.…Let's look at what's required to achieve budget recovery.…It's important to understand the cause of a bloating.…Here are some common causes for a bloated project budget.…
One, there are complexities in the project…that you didn't anticipate.…In this case, you should reevaluate the project…
Note: This course follows the latest guidance from Project Management Institute, Inc., as outlined the PMBOK® 6 Guide.
- Recall best practices for project budgeting and estimation.
- Distinguish common estimation approaches used to build project budgets, and understand when to use them.
- Identify best practices for budget expectation management, while utilizing sound budget refinement techniques.
- Describe and explore agile project budgeting techniques.
- Review various approaches for correcting project budget overruns.
- Review sound budget reporting approaches, including how they can be used to report project status.
- Recognize the issues and changes that can put a project budget in jeopardy.