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29

Project Cost

by Sayantan Roy

If the Project tolerances are exceeding in every stage in terms of cost, while new funds are allocated because of new investments. Is it still valid to continue with the project with the underestimated costs or is it better to share the revised project cost with the investors?

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3 Comments

  1. In my view, if it is already clear, that the overall project costs will exceed the budget, investor shall definitely be informed. At best there should be a meeting where this is discussed and the agreement about next steps is achieved. Also, the causes of the situation are a very important factor, so it is advisable to be well prepared to explain them to investor.
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  2. I would not keep such info away from the stakeholders (some budgetary/spending issues). From the PM perspective I would focus on the spending vs deliverables/benefits achieved and be absolutely clear about remaining backlog showing added priorities, listed dependencies as well as expected costs per backlog item to work on.
    +3 Reply Upvote post

    1. Roman, I agree with you. It is important to compare the spending and benefits achieved. Thank You.
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