Budget and Cost

When the project sponsor or customer is considering the project, cost is generally an important item. Because this concern precedes the planning of the project, the budget that the sponsor envisions for the project must be based on other considerations. Many times the sponsor's budget estimate is based primarily on the money that is available for this project. Sometimes this estimate is reduced by the sponsor because he or she is perceived as being financially responsible, as someone who gets a lot done for a little money. One element of the project manager's statement of work should be a feasibility analysis of the proposed budget as compared to the expected outcome cost. As the project specification is being created, the project ...

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