The most practical methods for assessing a project budget are:
Posted: Sun Jan 19, 2025 10:10 am
Analogous assessment. The method involves determining the cost of a project based on the data of a similar project. The budget of a previously developed project is taken and adapted to the new project. This approach gives good results when performing typical projects on a regular basis and is often used in practice.
Parametric evaluation. When using this method, the calculation is made based on data from previous or similar projects. But instead of comparative analysis of costs for tasks of the same type, statistical analysis methods and algorithms are used to calculate the values of variables. The calculations give a more accurate result.
Weighted three-point estimate. The method involves estimating the cost of a task in the most optimistic, most pessimistic and most probable variants. Based on the three estimates obtained, the weighted average cost is calculated. The method is appropriate for estimating the budgets of large projects.
Any available information should why choose our service be used in calculations. It is advisable to take into account other factors as well – for example, changes in the market situation in a certain area of activity.
Step 3: Agree and approve the project budget
The compiled budget must be agreed upon with the main project participants.
First, it should be presented to your immediate management. But the most important thing is to agree on the budget with the project stakeholders and the financial authority. During the approval process, comments will be made, changes and additions will be made. Based on the feedback, the budget will be refined.
Approval of the project budget
Step 4: Create a tracker to monitor budget execution
The tracker breaks down the stages of work on the project into tasks and analyzes what expenses were allocated according to the plan and what are the actual expenses. The budget is assessed in real time.
To track the project budget, the following platforms are used: 1C, Bitrix24, Excel.
If the team working on the project is large, it is recommended to allow access to the tracker only to the approved, most competent employees. This will increase the effectiveness of control and reduce the likelihood of unauthorized actions.
Parametric evaluation. When using this method, the calculation is made based on data from previous or similar projects. But instead of comparative analysis of costs for tasks of the same type, statistical analysis methods and algorithms are used to calculate the values of variables. The calculations give a more accurate result.
Weighted three-point estimate. The method involves estimating the cost of a task in the most optimistic, most pessimistic and most probable variants. Based on the three estimates obtained, the weighted average cost is calculated. The method is appropriate for estimating the budgets of large projects.
Any available information should why choose our service be used in calculations. It is advisable to take into account other factors as well – for example, changes in the market situation in a certain area of activity.
Step 3: Agree and approve the project budget
The compiled budget must be agreed upon with the main project participants.
First, it should be presented to your immediate management. But the most important thing is to agree on the budget with the project stakeholders and the financial authority. During the approval process, comments will be made, changes and additions will be made. Based on the feedback, the budget will be refined.
Approval of the project budget
Step 4: Create a tracker to monitor budget execution
The tracker breaks down the stages of work on the project into tasks and analyzes what expenses were allocated according to the plan and what are the actual expenses. The budget is assessed in real time.
To track the project budget, the following platforms are used: 1C, Bitrix24, Excel.
If the team working on the project is large, it is recommended to allow access to the tracker only to the approved, most competent employees. This will increase the effectiveness of control and reduce the likelihood of unauthorized actions.