How to Elaborate a Budget in a Project?

To determine the costs associated with a project, it must be made clear that there are several inputs that feed the process. The main one is the WBS and the schedule. Other inputs would be the scope of the project, the planning of human resources (salaries, etc.), the risks associated with the project, the current economic situation and the policies and assets of the company.

The way to determine the cost of each activity can be done through various methods

Among the most used are:

Estimation based on experience: It is usual for executives with certain experience to have an idea of ​​the approximate values ​​of the resources, ideas that can be used to budget the cost of the activities. Is this the best way to estimate the costs of a project?

Estimation by three values ​​(Project Management Institute, 2008): This estimate is calculated by averaging a cost awareness of an activity. In other words, an optimistic cost, a pessimistic cost and an expected cost are calculated and then added and divided by three (a common average).

Analysis of unit prices: The analysis of unit prices refers to the study of the costs and returns that will be had for an activity in a unitary measure. The analysis will give us the cost of the preparation, construction, assembly, etc. based on the use of equipment, tools, materials and labor.

Once the costs of the activities of the schedule have been determined, they must be added in ascending order and then the general figures for each work package.

With all analyzes we can begin to define the final budget that will work as the basis of the project costs.

Have you ever generated a budget for a project?

Download this excel so you have an idea of ​​how to plan the budget of a project!

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