Question

What are the different stages of calculating the project budget?

Please answer your question, aligned with PMBOK-6 edition

Answer 1

Steps can be as below:

• Calculate the Direct and In- Direct Labor Cost, which may occur during various project stages, as labor is costly nowadays and constitute the substantial cost in day to day work activities

• Calculate the Direct and In- Direct Material Costs, which could occur in during various project stages, whether is complete equipment cost, big or small, or repair materials which may be needed time to time. As this list can be huge, it is better to make individual list for every department, every function and then collate for total costs.

• Calculate the associate approximate travelling costs for employees of every department, which will have to move as planned during projects, across cities or nations

• Any office set up costs in different cities/ countries and associated regulatory etc. costs must be well estimated to get allocated in the total budget for project

• Any Administration/ Operational costs to be included

• Associated Software & Training costs to be calculated. Include special certifications costs