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Budget Control

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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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Solution Summary

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.

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Solution provided by:
Tamara Daniels, MS
Education
  • Master Online Teacher Certificate, University of Illinois
  • MS, National Louis University
  • MA, National Louis University
  • BA, University of Illinois
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