Budgeting and Baselining Your Project

Projects are investments. In the charter, we started to look at the benefits of a project, and in the work breakdown structure (WBS), we looked in more depth at exactly what we will create with the project. Now it is time to understand what it will cost us to create all of those deliverables. During project selection and chartering, very rough estimates of cost were considered to determine if the project’s benefits are likely to be worth the investment. Now, in the detailed planning, more comprehensive cost estimates are developed to once again determine if the project’s benefits are worth the investment. Additionally, the project budget will be used to manage cash flow and guide decisions about ...

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