At different stages of the project implementation, different budgets with different errors are formed. The main ones are:
Stage of defining the concept (idea) of the project. At this stage, the size of budget expectations (the size of the need for finance) is formed, preliminary planning of possible payments. The error coefficient of this type of planning is the largest in comparison with other stages of project implementation and is 25-40%.
Justification stage. At this stage, a preliminary project budget is formed with an error rate of 15-20%. At the same time, an investment and technical and economic justification of the project is prepared. The budget items of expenditure, the need to attract financial resources from outside are justified.
Negotiation and contracting why choose our service stage. After the project's trading procedures are completed, negotiations are held, contracts are concluded, and a revised budget is planned with the involvement of contractors and suppliers. At this stage, the budget error should not exceed 10%.
Documentation development stage. Based on the results of documentation development, the final budget is adopted, and the use of resources is restricted by order. Deviations in the final budget are 3-5%.
Project implementation stage, end of work. At this stage, work is carried out to implement the project according to the actual budget, the budget error is minimal.
The budgeting process represents the transition from estimated budget figures through formal procedures to adjusted actual values.
Types of budget by project stages
Directive budgets cannot be formed immediately after technical and economic studies, since at this stage they are of an evaluative nature. Only after all formalities have been agreed upon with the project participants and interested parties is an official document approved, with which the project implementation process is compared.
Whenever discrepancies between planned and actual figures are detected, these discrepancies should be reflected in the budget immediately. At the end of the project, the final document should reflect the final actual values set by the budget.
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