Creating a Project Budget: What You Need to Know
When starting a project, it is difficult to know how much it will cost. Project managers are held to account for their budget estimates and with so much uncertainty in projects, it can be one of the project managers' greatest challenges.
The ability to create an accurate budget is an essential skill for a project manager. It can be a daunting task, especially for new project managers; however, once you have created your first budget, you will have an approach to use, and it will become easier for future projects.
There are two main approaches you can take when creating a budget:
- Top-down approach: deciding how much the project will cost and dividing the amount between the work packages.
- Bottom-up approach: estimating th
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