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<p><strong>The project has a total budget of $80,000 and Consumer price index CPI of .95. The project has spent $25,000 of its budget so far. How much more money do you plan to spend on the project?</strong></p>
My planing to spending more money on the project is about59.210 Dollars and its coming from this equation ; 80,000 /0.95 -25,00 =59,210
We can not predict the exact money that needs to be spend on the project due to a lot of unforeseeable circumstances which can deviate the remaining reserved budget. Any kind of tools, such as, Earned Value Management, and Consumer Price Index, are only a tools used for estimating the cost of budget and they are changed in a continuous manner.
As Mr. Ayoub Tartir said, it is not possible to predict the exact money that needs to be spent on the project due to a lot variables that can deviate the remaining reserved budget. But in general, a good PM should try to spend according to project plan as accurate as possible to be within the available resources.
Thanks for the invitation
Good question
Agreed totally with both answers given by
Mr.:Ayoub & Mr.:Abdul-Hameed as well too
Agree completely with the answers given by Mr.Ayoub and Mr.Abdul-hameed D and the partly answer given by Mr.Fouad
Does the spent money cover the phase you are in? based on the given information not possible to predict. But I still plan to spent less money on the Project....
Depends on the project process and how long it will take with the cost.
Metrials as you know thier prices depends on the marketing overview and yearly points in tradings.
But a good planning and supportive solutions will make the job easy and you can decide the right way to do the job with lower cost as much as possible.
Uncertain on how much you will spend.
Certain on how much you spent and how much you have.
You cannot predict (the amount to be spent), you can only calculate (the available budget).
Forecasts were never been accurate, and will never be. As a project manager, i should have done a planning excercise prior to its debut. This planning excercise will try to estimate the total manpower, needs, materials, offices, etc.. and add a10% (vulnerable percentage due to increase value market) and10% more (sudden and forgotton calculations. This means my planning should be20% more than the actual prices, which is here:64000 (the16000 is the extra20%). Thus i go blindly with a sum of39000 USD. The16000 will be used carefully as these will be used for:
1- Backup if the project was short for money
2- Profit if the project went according to actual cost
As a project manager firstly, I will do what ever it takes to control my spending to fit with the amount of the budget with out compromising quality and achieving a the expected out come. But if I its not possible, then, I will call for review of the budget to the stakeholders involved.
