How to Create a Project Budget

During this course you will learn how easy it is to create a step-by-step Project Plan with specifications and a project budget.

Project Specifications

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Project Budget

How to Draw up a Project Budget

What is a Project Budget?

A project budget is a comprehensive plan of all the costs involved in completing the project.  It is very detailed and gives you cost per activity.

What costs are involved in a project?

  1. Labour Cost
  2. Material & Equipment Cost
  3. Travel Cost
  4. Additional Cost
  5. Unforeseen Cost

How do I draw up a project budget?

Start by breaking each step in your project into various tasks.  Some tasks can be broken up into sub task.

Once you have identified all the different tasks to be done in the project, identify what you will need to complete the task.

Ask yourself the following questions:

  • Who will do the task and how long will it take them to do the task?  How much will this cost?
  • With what will the person do the task? How many does the person need to complete the task?  How much will this cost?
  • How and where will the person do the task?  Does that include any cost?
  • Are there any additional or cost involved? For example storage, bank costs etc.

Add all the cost involved, per task.

Add all the cost involved for all the tasks that need to be completed.

Add 10% of the total amount, to the budget for any unforeseen costs.

How much do you need to add to your budget to make allowances for unforeseen cost?

Choose the correct answer.

  • 15%
  • 10%
  • R 500.00