Project Budgeting : Project Scheduling Essay
Similar to project scheduling, budgeting is often created in the preconstruction stage but neglected or forgotten throughout the duration of the project. This results in a budget that is not always updated or adjusted as new cost or expenses arise. With new cost the budget will have to be shifted around to accommodate for the increase in cost, without updating cost it becomes difficult to meet the goals set in the budget especially since cost are not directly accounted for towards a particular task in the budget. There should be a focus on creating a budget in the preconstruction stage but also maintaining that budget and keeping it update even throughout the construction stages. Doing so will allow goals in terms of cost to be met easier.
With budgeting it becomes difficult to estimate or predict cost in order to create a budget. Budgeting relies on predicting the cost of task or resources in advance in order to be effective. In many cases the estimated cost is not always close to the actual cost. This makes provide misleading information especially if a project is on a tight budget. Over the years the accuracy budgeting has increased with the availability of various tools. But since every project is different and varies there is still going to be a margin of error.
There are a few methods to improve cost predictability or to accommodate for the margin of error. One method is to add a 10% allowance to each task in order to…