50 Top IT Project Management Challenges

CHALLENGE 16: UNSTRUCTURED PROJECT COSTING

Every project incurs costs through hardware/software, resources, vendor, network bandwidth and telephone. Tracking a project’s costs is dependent on your organisation’s requirements. The common purpose of tracking costs is to ensure they are within the budgeted figure. For example, if a project is budgeted for $1,000 and the project is going to return the organisation $5,000, then the business benefits/return on investment (ROI) is $4,000. If the project costs are not tracked, and the actuals are now more than $5,000, then the ROI is negative, and no organisation will want to deliver that project. In such cases, actual project cost tracking is important, and the project manager should highlight to senior ...