In order to keep your project in budget you need to:
A project consists out of three stages namely: Planning, Execution and Control. The control stage is extremely important as your budget and timeline are determined on how monitor and evaluate your project. You do not want to miss deadlines, go out of budget or miss important milestones. Therefore, once a Work Breakdown Structure (WBS) has been established it is important to keep control of the project by monitoring the progress thereof. Some examples how progress can be monitored are: by holding meetings, face to face discussions, personal observations and verbal and written reports. You need to evaluate your project to see if the scope changes, what progress has been made and always determine if you are still in budget. In case you are faced with project delays, to bring the project back on track, there are a couple of ideas you can apply: increase your resources, work overtime, use incentives expedite the work and also alter the schedule. Keeping control of cost overruns are extremely important. One of the many problems that projects are faced with is that the cost of the project in many cases is more then what was initially budgeted for. In order to control this you must detect problem areas early before irreversible expenditure is incurred. Focus your attention on areas that forecast overruns and try to stay within budget. Deal with the problems that cause the overruns to eliminate it so it does not occur again. Try and cut the budget on other areas of the project to bring it back into cost. Reduce the scope of the work and draw on contingencies that are built into the project when the project was initially drawn up.
- Deal with problems that causes the overruns
- Identify problem areas towards the end of the project
- Focus on areas that are on track
- Don't focus on problems early n the project as it might improve at a later stage