Question 5: Have you defined a detailed project budget?
Good Practice: Define all costs in the form of a project budget. Your budget should include all external costs such as licences, third-party services, consultants, consumables, etc. This budget should be signed off by the steering committee or other authority to make sure enough funds are readily available.
A few basic rules will help make sure an accurate and realistic budget is produced:
Assume that people will only be productive for 80% of their time.
People working on multiple projects take longer to complete tasks because of time lost switching between them.
People are optimistic and often underestimate how long tasks will take.
When creating your budget, use other people's experiences and your own.
Get an expert view.
Include management time in any estimate.
Always build in contingency for problem-solving, meetings and other unexpected events.