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متابعة

If the budget allocated to realize a project is too short. how do you advise your client and which strategy do you use?

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تم إضافة السؤال من قبل Franck Improta
تاريخ النشر: 2013/10/21
حسام ناجى
من قبل حسام ناجى , testing and commissioning engineer II , SENDAN INTERNATIONAL COMPANY

stop the project and find the solutions

Mohammad Tohamy Hussein Hussein
من قبل Mohammad Tohamy Hussein Hussein , Chief Executive Officer & ERP Architect , Egyptian Software Group

My first strategy will be to inform management and the customer(s) as soon as I realize that this is coming and seek thier decision on how to proceed.

If the budget limit is reached, I will halt the task, define the root causes, define alternative solutions, and seek management and customer approval if not recoverable. If recoverable, I will update the project plan to include the recoverability tasks.

Another possible strategy will be to reduce the scope of the project if the budget expansion is not approved by management and customer(s).

Abdelkrim TRABELSI
من قبل Abdelkrim TRABELSI , Ingénieur Projet , Zodiac

If the budget for a project is too short it says that we have bad studied the project and we are overoptimistic

The solution is to repeat the study of the project based on the evolution of the market point of view the material cost, labor cost, average cost (but still must make margins in our study to absorb contingencies)

 

مستخدم محذوف‎
من قبل مستخدم محذوف‎

You will have three alternatives:

1- continue with project, and settle for the least quality possible by looking for cheap options to finish

2- ask for amendment of the project budget

3- descope the project to certain deliverables

and for sure, if the options above are not viable, then we need to terminate the project

Ramendra Sunder Sinha PMP
من قبل Ramendra Sunder Sinha PMP , DGM Planning , Gaur Sons Limited

If the Budget is too short the Project Manager is at fault as the estimates were incorrect during Planning Stage. The authority of allocating funds is that of the Sponsor who may also be the client.

The preferred corrective strategy would be to put a Change Request for enhancement of Budget as cutting of Costs may result in cutting the Scope and compromising on Quality. 

Reneesh George
من قبل Reneesh George , Senior Planning Engineer , Dorsch Gruppe

Prepare a detailed Cost Estimate and submit a comparison report to support your claim.

Stratefy to be applied:

- If your Estimate is higher due to the risk involved: Advise to increase the Contingency Budget to absorb the risks

- If your Estimate is higher due a Improper cost estimate: Support your claim with the current/ market unit rates. Since most of the intial Budget allocation is based on Previous Project experience or Past historical records

- If your Estimate is higher due a Improper Resource estimate: Support your claim with Project Team recommendations

Ajikumar Gopinathan Nair
من قبل Ajikumar Gopinathan Nair , Technical Consultant in Clean Kerala Co Ltd , Clean Keral Company Ltd

See whether the budget allocation is sufficient for the preparation of the Detailed Project Report(DPR) and if so go for it or for the preliminaries such as feasibility investigation survey, EIA(Environment  Impact Assessment) study etc. At any cost the budget allocation should be progressively utilized towards the realization of the project and should not be allowed to lapse.

محمد صالح بن جحلان
من قبل محمد صالح بن جحلان , إدارة العلاقات الحكومية والميناء , مؤسسة إنجاز الفنار للمقاولات والتشغيل والصيانة

اخذ القرار اللازم بما يخدم المصلحة سواء كان ماديآ او معنويآ  بوقت كافي لعدم الخسارة .

 

Take the necessary decision to serve the interest, whether physical or mental well enough not to lose.

Vineet Aggarwal
من قبل Vineet Aggarwal

Adopt a modular approach so that you can deliver at least the most critical functionality within the bidget and then you can ask for budgetary extension to complete the remaining scope in the order of priority and management approval

MALIIK SOHAIL ABBAS
من قبل MALIIK SOHAIL ABBAS , ACCOUNTS MANAGER , AL RAWDAH GREEN SWEET WATER

if the allocated budget is too short then call the Cnetrla board of director meeting to meet the clints requirement approve the short fall or the short amount recover from the contingency head if availabale. dont stop the project activities as well.

G S
من قبل G S , Senior lawyer , National Union of Attorney at Law of Romania

Reduce costs, make a claim for additional money and find cheaper sub-contractors.