Question

A project manager in your organization announces that the project is under budget. The project manager provides a report that illustrates that the project spending is below that which was planned at this point in the project. On the other hand, the overall progress of the project for this time-period is unclear. What concerns, if any, would you have regarding the project budget status?

Answer 1

Concerns regarding project budget status:

For any project to become a success, it is very important to make sure that proper budgets are framed well in advance and that project works as per the set budgets. For any under progress project and one running behind its set budgets, following are the issues of concern:

• The project will not be able to achieve the desired goals at the end of the project period.
• The project team will not be able to produce high quality output due to lack of money.
• There will be inability to purchase the desired amount of resources by the project team due to inadequate amount of money.
• There might grow certain clashes between the project team members in relation to access to resources and money while working.
• Taking strong and free decisions will be a problem as limited budget will restrict the decisions to be taken.