4 AGREE A BUDGET TOLERANCE
A budget tolerance is a range within which you can spend without having to report back to your sponsor or ask for more money.
Budget tolerance is particularly useful at the end of a project as you near the delivery date. If you have a budget of £80,000 with a tolerance of 10 per cent and you complete the project for £85,000 you have still delivered within the parameters set by your sponsor. A budget tolerance of 10 per cent means you can deliver the project 10 per cent over cost without having to get special permission to do so.
NOT A PENNY MORE…
Peter McDonald, an engineer working in Wales, thinks back to his ...
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