Here's how you can skillfully handle project budgets as a project manager.

Effective budget planning is crucial for successful project management, starting with defining the project scope and identifying all associated costs, including direct costs like materials and labor, and indirect costs such as overheads. Being realistic and including contingencies for unexpected expenses is essential. A well-planned budget should align with the project's goals, offering a clear roadmap for expenditure to ensure every dollar spent contributes to the project's success.

First, list all the process items within the project e.g. process of purchasing a semi-commercial unit to convert to residential apartments would look like this: - Conveyancing (purchase- including solicitor fees, valuation fees etc) - Planning application (including architectural drawings etc) - Title splits - Building control drawings and build specs such as for fire, EPC and sound - The build (including drainage, electrical etc) Once you have these high level outline processes in the flow, allocate timelines to each as this is how you are going to measure progress. Cost estimates can then be obtained to each of these lines in the planning process

First, list all the process items within the project e.g. process of purchasing a semi-commercial unit to convert to residential apartments would look like this: - Conveyancing (purchase- including solicitor fees, valuation fees etc) - Planning application (including architectural drawings etc) - Title splits - Building control drawings and build specs such as for fire, EPC and sound - The build (including drainage, electrical etc) Once you have these high level outline processes in the flow, allocate timelines to each as this is how you are going to measure progress. Cost estimates can then be obtained to each of these lines in the planning process

In cost estimation, you can leverage previous experience, experience of those in the industry who are in your network or research guidance online. To each line item in the process flow, go to the smallest possible detail so you can itemise the flow/cost e.g. in a bathroom refurb project that could be cost of tiles, toilet suite, mirrors, lighting etc Obtain at least three quotes for each of these line items - remember cheap isn’t always quality - try to strike a good balance depending on the finish you are going for. Put these together and allow a 5-10% contingency for things out of your control. Try and lock in estimates that are valid for a period of time within your project timeframe.

When seeking budget approval, don't just present the costs, make sure you present (a) the benefits of the spend and (b) the costs of not approving the spend. 'I need £60,000 to hire someone' is hard to say yes to 'I need £60,000 to hire someone, who will help us launch the new service line we committed to in the strategy' Is better, but better still is adding... 'By not hiring this person we will be unable to launch the service for 6 months and the following projects will suffer from needing to reallocate resources' Great if you can also quantify those benefits, but often just telling the story around the budget request turns that hard yes for additional expenditure into an easy approval.

Keep records of all your spending in a timely manner to avoid forgetting anything especially if paid for by cash. Use excel spreadsheets or any appropriate accounting software to suit size of project to make the final reporting easier to manage. Monitor your cumulative spending at each expense line against the budget and timelines as an early sign of where costs could be going out of hand. Reconcile your bank accounts and spending on a regular basis. Identify reasons for deviations to plans/budgets and seek to resolve creatively as early as possible in case you need to seek additional funding or revise budgets