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Managing a Project - The Money Factor
February 8, 2009 | Author: PM Hut | Filed under: Cost Management, Project Management for Beginners
Managing a Project - The Money Factor (#11 in the Hut Project Management Handbook)
By Wouter Baars
The money factor manifests itself in the project budget. The management of money within a project involves ensuring that the costs remain within the budget. Given that the majority of the costs in most projects are comprised of labour costs, the factors of money and time (the number of labour hours) are closely intertwined.
Money in project plans:
- Determine the fees of the team members.
- Estimate the hours for the team members.
- Assign budgets to team members for specific tasks.
- Determine costs for material and tools.
Money in progress monitoring:
- Monitor cash flow.
- Negotiate with suppliers.
- Determine whether the original cost estimates are still accurate.
- Adjust budgets.
- Negotiate with customer and/or client concerning budget adjustments.
Money in project reporting:
- Compile financial reports and statements.
- Analyse definitive financial report.
Next in the Hut Project Management Handbook:
Managing a Project - The Quality Factor
Previously in the Hut Project Management Handbook:
Managing a Project - The Time Factor
Wouter Baars has a Master of Science degree in Industrial Engineering and Management Science. He has been a project manager for several years for The European commission, Waag Society, KPN (Dutch telecom provider) and many smaller organizations. He is specialized in creative projects such as serious game development, e-learning and software development. Currently he is teaching project management and coaching organizations that are working on their project management. More info on his work: www.projectmanagement-training.net.
Originally published by DANS – Data Archiving and Networked Services - The Hague
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