What to Do When Your Project Goes Over Budget
Hi there,
No matter how organized a project manager is, sometimes unexpected things happen. When your project goes over budget, it is often impossible to compensate enough to keep the cost within original budget. So what can you do to fix things?
Whether the project ended up taking longer than expected, the scope grew larger than planned, or the cost was simply not monitored closely enough, there are a few things project managers can do to mitigate the extent to which a project exceeds budget.
Here are some suggestions on how to minimize the problem:
- Take action. Don't just wait for the problem to fix itself. Once a project goes over budget, there's no going back. Make some changes now to keep the issue from growing.
- Identify the extent of the problem. How much of the project still needs to be completed, and how much of the budget is left? This will help you evaluate the impact.
- Look for additional funding. Though this will not help save on costs, it may be the best option for completing the project. Look for funding options with fast approval times.
- Reduce the scope. You can save on funding by reducing the scope of the project, but only if the project can still achieve the main objectives.
- Cut unnecessary costs. Yes, this one is obvious, but make sure you look at every opportunity to cut costs, including resources, materials, labor, etc.
- Communicate. Don't wait too long to inform your team members and stakeholders about the status of the project and the budget. Explain what happened and why.
Going over budget isn't the end of the world, but it could have serious consequences. Act quickly to keep the problem from growing and show your team members and stakeholders that you can handle difficult challenges.
Best of luck,
Daniel Eke
Factor Funding Co.
