This is
probably one of the largest financial undertakings you have made. You
need to ensure that it is properly managed. eg: would you take your
brand new car to an unknown garage for a service? No, of course not. You
would take it to an expert happy to pay a premium as your financial
investment in the car is properly looked after.
A Project
Managers criteria for managing the budget are as follows:
-
Agreeing
your spend limit.
-
Ensuring
correct contingency sums are allowed in your budget.
-
Ensuring
like for like quotations are obtained.
-
Offering
independent pricing as a check as required.
-
Linking
cashflow to the programme thereby minimising bank and interest
charges.
-
Correctly
valuing the work in progress and materials on site.
-
Negotiating
stage payments with your builder.
All of the
above help to ensure that at any time the costs are clear, the project
does not run way over budget due to unforseen circumstances and if extra
costs are involved then a proper valuation is agreed ie: the builder
cannot inflate costs simply because he is on site and carrying out the
work.
(click
here for more information)
