As you create your budget and cost estimates, make sure you document HOW you got your numbers.
- Any strategies used
- Any assumptions made
- Your entire range – from pessimistic to optimistic
- What pessimistic MEANS (what could go wrong)
- This is the beginning of what is known in project management circles as the Risk Register.
- Known constraints
- The confidence level of your estimate
Though your monetary gatekeepers might not ask these questions right away, they WILL come up.
Best to have that information handy.
Ideally, your organization has defined processes and templates available for project budgets and supporting documentation.
- If you have a Project Management Office in your organization – go talk to them
- If you don’t – find the person who does most of the “project management type” activity in your office
If your organization doesn’t have processes or templates available – a search on Project Budget Templates in the search engine of your choice will help provide examples.