7.3 Determine Budget
Process Definition
Determining the budget is every project managers favorite process. This is the culmination of all cost related activities or work packages brought together to create the overall budget of the project.
Figure 20. Project Management Body of Knowledge Figure 7-6. Reprinted from "A Guide to the Project Management Body of Knowledge (PMBOK Guide), 5th Edition" by Project Management Institute, 2013, p. 208. Copyright 2013 by Project Management Institute, Inc. Reprinted without permission.
Process Assessment
This process establishes a cost baseline. This should be a refinement from the original cost estimate from the project charter and represent the figure to which the project budget will be controlled and monitored. It is a representation of the funds required and authorized to complete the project.
(Inputs) Cost Management Plan
The cost management plan provides the guidance for the project team as to how project costs will be planned, structured and controlled. This example is from a group project in PMGT 501 Fundamentals of Project Management, written by Jeremy Curbey, Jay Kinser, and Charles Sutherland.
(Tools & Techniques) Expert Judgement
This document provides expert judgment understanding on estimating the cost of the project and how it is developed towards meeting the business process of a project in relation to the stakeholders requirements. The example is an excerpt from a group project in PGMT 612 Leading Projects Across Cultural, Corporate, and International
Boundaries, that was written by Jeremy Curbey, Khoi ChuChe, Corey Cowley, Reese Darlington, and Domingo Tuckler.
(Outputs) Cost Baseline
The cost baseline shows the approved version of the time-phased budget minus management reserves. This example is from PMGT 501 Fundamentals of Project Management.