Introduction. Project Management Involves Starting, Planning,

1317 WordsFeb 13, 20176 Pages
Introduction Project management involves starting, planning, acting, control and the closure of a team’s work so as to achieve specific set objectives. A project is defined as a temporary endeavour which is formulated to give birth to a unique product, service or a result which had fore-shadowed beginning and end. It is usually taken to meet specific goals and objectives which bring out added advantage (Dunne and Dunne, 2011). Financial factors During project the running of a project there are many factors that are considered during its management. Financial factors are some of the ones to be considered. Finance is the most important point for information which may be requested for by the lenders, creditors and the stockholders so as to…show more content…
The budget essentially helps in determining what is to be the total expenditure, how the monies will be allocated to different parts of the project, and also help determine where the funds will come from (Lock and Scott, 2013). This early and systematic financial planning helps in making sure there is no misappropriation of funds. It also ensures that whatever was planned for is what is incurred and ensure no extra funding will arise in the middle of the project which would be a big problem. The factors are also important as they help to determine if the project will yield the expected returns in both the short-term and long-term. Commercial factors These are factors that lead to making of profit. During the inception of the project the organization always has one of its objectives or goals as increase in returns. In the most cases when an organization incepts a new project, its ultimate goal is to increase on the returns after the project is successfully initiated (Melton and Iles-Smith, 2009). The factors here include social, legal, economic and also political. Legal factor is the one which requires the organization to work under certain jurisdictions. It controls the organizations operations that they remain legal. This is important in the management of projects as it ensures that whatever the project is, it works under the law and does not break any rules. The political status of the region or country of which the project is to be put
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