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

stop the project and find the solutions

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).

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)

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

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. 

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

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.

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.

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

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.

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