HBR 20-Minute Manager Boxed Set (10 Books) (HBR 20-Minute Manager Series)

Managing Projects

70

budgeted. Good project managers maintain the origi-

nal estimates as a reference point, but they also keep

a running tally of where they have run over or under

budget. If they see that the total budget is likely to

exceed the original amount, they make their case as

soon as possible to whoever holds the purse strings—

with a clear explanation as to why they’ll need more

money.

When monitoring actual costs, watch out for these

common contingencies, which can upset your origi-

nal estimates:

• Unanticipated price hikes from suppliers and

subcontractors

• Estimates based on different costing methods—

for example, hours versus dollars

• Unplanned personnel costs required to keep

the project on schedule, including increased

overtime ...