Page
Estimating Format for Detail
Completion requirements
View
The budget provides the project manager with a control mechanism, and it serves as a standard for comparison, a baseline from which to measure the difference between the actual and planned use of resources. At this stage, we have a project plan that includes:
- A list of key activities
- A responsibility outline
- A network diagram
- A Gantt chart
- A resource sheet
Thus, it is advisable to do a pro-forma cash-flow forecast that will be based on estimated figures and during the duration of the project a comparison can be made between the pro-forma and the actual cash-flow statement.
The following example will also be of value during the planning and setting up of the budget in conjunction with the BAR-chart as a guide.
Barchart And Cash Flow Forecast
The expense S-curve is another method of modelling the cash flow providing a link between the CPM and the budget. The S-curve is also often referred to as the BCWS or better known as Budget Cost for Work Scheduled.
S–Curve