A question of money
One of the key project elements that project managers must continuously monitor and control is cost overruns. Luckily, there are strategies that project managers can implement to help them--at best--prevent overruns, or at the very least, to minimize the impact of overruns. This article discusses measures that project managers can use to more effectively control their project budgets. In doing so, it identifies the reasons why many projects exceed budget forecasts and discusses the impact of contingency planning, advising project managers to expect unforeseen problems and suggesting they use established techniques such as the Monte Carlo simulation to anticipate these problems and to develop realistic estimates of likely project costs. It then discusses ways that project managers can successfully manage project budgets and shave cost savings from projects that are estimated realistically and correctly.