Budgeting Is The Most Important Parts Of The Project Planning Process

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Budgeting is one of the most important parts of the project planning process. Projects that come in at or under budget when completed depends on it. Poor planning will lead to budget crisis - where the project could end up costing double or triple times the budget and delay the opening of a facility or business by that same token; time is money. As Dr. Pace mentions, had the planners of the Irwin Army Community Hospital paid attention to the budget planning, the sponsor might have realized the short comings of that project (G. Pace, personal communication, December 3, 2015). Therefore, budgeting is the most important out of planning projects. Bottom line, the customers already know what they want to do and about a ball park figure of what…show more content…
The scope of the project gets defined in the work breakdown structure (WBS), where the schedules are planned, and resources are assigned; at which the project manager are more familiar and can estimate more precisely to an agreeable point with the customers. “Project scope has a great influence on the accuracy of cost estimates” (Ciraci & Polat, 2009). “The delay and disruption caused by bad estimation may lead to project failure (Lee et al. 2009) or at best to project management failure, that is, not delivering the project on time, within budget, and per specifications” (Khamooshi & Cioffi, 2013). Projects that come in at or under budget when completed depends on budgeting. Poor planning will lead to budget crisis - where the project could end up costing double or triple times the budget and delay the opening of a facility or business by that same token; time is money. As Dr. Pace mentioned in class, had the planners of the Irwin Army Community Hospital paid attention to the budget planning, the sponsor might have realized the short comings of that project (G. Pace, personal communication, December 3, 2015). Bottom line, the customers already know what they want to do and about a ball park figure of what they are willing to pay to have it done before they call a project manager. As in the movie, Jerry McGuire (1996), Rod Tidwell: It 's a very personal, a very important thing. Hell, it 's a family motto. Are you ready, Jerry? Jerry Maguire: I 'm ready. Rod Tidwell: I
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