Project Budgets, Essay Example

The success of any project is substantially reliant on the determination and management of the budget, and it is crucial in the achievement of a project. The process involved in the determination of the budget centers on the duration of the project resources allocated to the project and the estimated cost of the project.

For the completion of the budget, process risk assessment is vital to the project. The pitfalls likely at this stage include the accurate identification of likely risk, the proper evaluation and the mitigation of the risk. The solution in, this scenario, would be to use previous experiences and knowledge of the project to anticipate the likely risks and prepare a solution in case of such a risk.

The management of the project budget should follow a predefined schedule in order to maintain the estimated quantity of resources allocated. The chore that is necessary to any project budget is a well-defined schedule. The likely downfall of a project schedule would be the commitment to estimates as they are just so and difficult to follow. In order to overcome the challenges of a schedule, it becomes necessary to incorporate experience in the project or the knowledge acquired regarding the project to develop a schedule consistent with the budgeted estimates.

It is worth noting that appropriate communication concerning the budget and the approval of the project budget play a crucial role in the success of a project budget. Proper project coordination ensures the participants are in harmony and ensures all aspects of the budget estimates and time lines. The approval of the project budget by the key players is essential for the commencement of the project.