Part of a project agreement is a spending limit for the project. That figure sets the amount of money the team will have for creating the final deliverable. In this article (taken from the book, Cheetah Project Management), we'll discuss the way the project team members re-examine the interim deliverables and determine the internal cost (labor costs) as well as the external costs (including materials) and when they will need the money for the completion of the interim deliverables (cash flow projections).

Depending on the company, there can be detailed cost-accounting methods for determining the budgets and procuring the funds necessary to produce the final deliverable. During the accelerated project launch, the intention is to get input from the team members for their budget needs to create their interim deliverables. The project leader works with the facilitator after the launch event to create the detailed project budget that is in line with their organization’s accounting practices.

In the event that the budget is over the allotted spending limit, the project leader needs to work with the sponsor and the team to align the spending limit with the project budget. To accelerate a project, the team needs to secure the funding up-front to complete the project, preventing any delays and distractions. Without the funding, the funding mandate, or discussions about funding, you can lose the pace of your project.

This article includes all of the information you need to make sure that you stay within your budget to the best of your ability. You will also learn what you should do if you go over your budget. We cover the following topics:

• Labor costs
• External/Material costs
• Cash flow
• Aligning your budget and your spending limit

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