DoIT Project Management Advisor
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Stage 3: Plan the Project
 
 
Activities

 

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What it is: Develop Project Budget

Description
The project budget is a detailed estimate of all the costs required to complete project tasks. It is much more detailed than the high-level budget developed in the Initiate Stage. The typical budget specifies costs for staff labor, materials procurement, ongoing operating costs and other direct costs such as travel or training.

Rationale/Reason
The detailed budget provides the project sponsor with a best estimate of how much the project will cost. The detail budget helps manage expectations and gives the project sponsor information to develop a cost/benefit for the project.

The budget is also used in the Execute and Control stage to help determine whether the project is financially on track.

Who is involved?
Project Manager
Project Sponsor
Project Team

Results
This information is included in a separate section of your project plan often referred to as “Project Budget.”

 

 

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Updated February 1, 2006 - v1.0