The Project Workout

22 Managing the finances

1. The financial plan
2. Financial management controls
3. Estimating the costs
4. Authorization to spend funds
5. Recording actual costs and committed costs
6. Financial reporting
7. Earned value

Just as a schedule plan is used as the baseline for measuring progress in terms of “time”, the financial plan is the basis for measuring costs and financial benefits.

“We haven’t the money, so we’ve got to think”

LORD RUTHERFORD, 1871–1937

• Plan in summary for the full project.
• Base your costs on the same work breakdown as your schedule.
• Estimate in detail before you start work on the next stage.
• Once a budget is agreed, baseline it.
• Keep your eye ...