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Budget Control

Can you think of any other reasons why the baseline of the budget might need to be changed midstream on a project?

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Absenteeism and Theft: You can't really anticipate when a worker is going to be absent from work, especially in those ...

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There are three main reasons why there are changes to a budget (and hence, changes to the overall budget): (1) errors the cost estimator made about how to achieve the tasks identified in the project plan; (2) an increased knowledge about the project's goal and deliverables causes changes to the way of thinking, leading to wholesale changes in the project; and (3) a new law, standard, or mandate occurs, leading to a change in the way the project is carried out. This excerpt discusses a few additional reasons that explain why budgets collapse.