The project costs are determined from the project plan, based on the schedule and resources required. Continuing management costs, after the project closure, may also be included. It is useful to split the costs into segments, like design, human resources, structures, information systems, etc. Engineering materials and evaluation costs also need to be included in the project costs. Software is mostly used for tracking project costs, like Primavera project management software, Primavera p6, is extensively being used as a modern tool for cost management. The buyers closing costs for a residential home project may be conveniently determined by a closing costs calculator. Construction cost estimating software can be used for an accurate evaluation for the construction projects.
Authorized Time-Phased Budget
Establishment of a time-phased budget is essential, since it permits the project expenditures according to the specified time periods, like monthly, quarterly, yearly, etc. Expected monetary benefits, and the period of their occurrence is important information for the project sponsor. Information concerning return on investment is an important aspect that may require attention by the project management team or leader. A project producing a lesser rate of return may not be feasible to be executed. A business may have an option to select a project from several options that may be available. The rate of return may be the crucial deciding factor for the selection of projects.
The duration of the project is indicated for evaluating the business opportunities that may occur during this period.
The methodology to be used for the measurement, and tracking of project performance is vital information for the stakeholders. Use of Gantt charts may be recommended for tracking project performance.
It may be essential to mention the assumptions on which the business case is based, and the actions that would be necessary if the assumptions are not proved to be valid.
The prospective risks that a project may encounter during execution are evaluated, including the potential risk responses.
Consequences If Project Not Performed
An evaluation is also carried out regarding the option if the project concerned is not performed, including the disadvantages to the organization. Implications, including the opportunities lost, are critically analyzed. The alternatives available are examined.
A business case analysis will essentially include the details of reference materials so that they can be consulted, when necessary. This includes statistical data, business case examples, budget spread sheets, diagrams, etc., that contain information related to the project.
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