Last week we talked about planning a schedule.
Today we will talk about planning the finances of a
project, which involves developing a BUDGET.
Budget = a financial plan and a
list of all planned expenses and revenue
The purpose of
a budget
1.
To know how much you need to request.
2.
To know how much is available to spend.
3.
Accountability
a.
For yourself - Make sure you are not spending
money on other things.
Make
sure you do not overspend the budget.
This
makes you prioritize what you need,
and
makes you more efficient with what you do have.
b.
To show your sponsor how much you have spent,
and that you only spend on the project.
Steps
1.
List everything involved
a.
Labor - List all personnel working on the budget
b.
Materials - List everything you need to buy
c.
Travel – will you need to go to another town for
supplies?
d.
Rentals – will you need to buy land, rent a
house etc?
THIS IS WHY YOU NEEDED
to figure out your tasks and schedule last week.
2.
Go back and fill in the costs.
3.
Create the budget in tabular form.
a.
On paper
b.
On computer – better, automatic summations
c.
Spreadsheet = A table of values arranged in rows
and columns
How to figure out salary:
money needed for each person
= (monthly salary) x (# of months on project) x (% of each month spent on
project).
Accountability
DURING the project
Your project manager is ultimately responsible
for the budget and makes changes as the project proceeds.
She can however, delegate the task of who manages the
budget.
The total amount can never change! You get what you asked for.
One person must be in charge of the budget –
Tallying up what was spent each week
Informing workers of how much is available in each category
The project manager must take corrective action if a
category is overspent.
He can hire and fire
people.
To ensure accountability from everyone working on the
project –
receipts must be
acquired for EVERYTHING!
If you overspend a
category -
Project manager can rearrange how much is allocated
per category.
Keep track of the budget and the schedule.
Bad = half the budget spent, but only ¼ the work done.
Labor
Have a signed contract that details the salary, how often
pay, etc.
If you overspend your budget, you will not be able to
finish the project and the contractor will not work with you again, and will
let others know not to work with you.
This is why many sponsors ask for monthly or quarterly
reports.
They want to see your progress, and that you have the
budget to finish the project.
Handed back group projects
Main things – include each item that I ask for, and
make it obvious. I grade as much on
following directions as content.
When a company has a lot of proposals to look at, they
don’t waste time looking at incomplete proposals.
Write a budget
for your group project
1.
On your sheet from last week or new sheet for
each task list expenses
2.
Transfer to appropriate table on budget handout
3.
Turn
in by 2pm next Thursday.
KEEP ALL
HANDOUTS and HOMEWORK! YOU WILL TYPE UP
A FINAL PROJECT PLAN FROM THESE!
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