Project Management — Planning Phase: (5 of 12) — Budget Plan

Learn how to develop a Budget Plan. Summarizes the expenditures and source of funding for the project during the life of the project, by providing an expense or cost breakdown for each work package by fiscal year.

How to Develop Project Budget Plan in PMBOK?

If your project has been approved, now you need to work out how much it is going to cost in detail. Often, when you come into a project, there is already an expectation of how much it will cost or how much time it will take.

When you make an estimate early in the project without knowing much about it, that estimate is called a rough order-of-magnitude estimate (or a ballpark estimate). This estimate will become more refined as time goes on and you learn more about the project.

Once this is compiled, you add up the cost estimates into a budget plan. You can then track the project according to that budget while the work is ongoing.

Learning More About Initiation Phase in Project Management