4.1.2.1P Manage the Budget / Small Project

(4.1.2.1P.P1)

Small projects usually have a very small budget (if any). Therefore you would need very informal processes and techniques to manage it. If you have one of those rare projects that are considered to be “small” and yet you have a large budget, you should utilize the budget management processes of a medium or large project.

 

Role

Manage the Budget (Small Project)

1

Project Manager

List all planned expenditures

Identify the specific items that you expect to spend money on during the project. If this is a small project this should not be a very long list.

2

Project Manager, Team Members

Track all expenditures

As you spend money on items during the project, track the actual costs against the estimated costs.

3

Project Manager

Forecast whether you will finish the work within expectations

Evaluate the remaining costs to see if the project will be completed within the original budget estimate. You may find that even though some items may cost more money than estimated, other items are costing less. It is usually the total costs that you have to manage.

4

Project Manager, Sponsor

Take corrective actions, if needed

Since this is the process for a small project, it would be unusual to have major problems on budget. If the budget is important, you are obligated to try to achieve it. You can use some of the cost control techniques described for larger projects. It is possible that you may have to ask for more budget. If the budget needs to be extended once, the team absolutely needs to meet the new expectations.