In most projects, actual expenditures are recorded and calculated on a monthly basis as most companies only provide monthly accounting reports. Say you've done it, but just be aware that you are starting over budget. Maybe it's not time to panic, but you also do not want to ignore this situation. Here are some techniques you can use to return to the initial budget.
Replace People
If cost control is more important than the deadline, you may not mind the work takes longer to finally be resolved well with a more cost efficient. This technique can also be used to replace the employee consultants with internal employees if internal employees can reduce the cost of your project.
Eliminate or Reduce Non-Labor Costs
Just like people, we can use the material, equipment, or services that are less expensive than originally budgeted. For example, you could ask employees who travel frequently for discounted hotel stays dijaringan, not upscale accommodations; see if the team can use the hardware to upgrade instead of buying a new machine, using a computer-based training that is cheaper or the monitoring team of the class formal training.
Implement the "Zero Tolerance" Toward Change
You must ensure that no new jobs were added to the project, unless the management involved. It does not mean you do not want to do extra work, but you should receive a supplementary budget for all new jobs are added to the project.
Not Paying Overtime
Of course, this only applies if the employee does not get paid as overtime. If it is towards the end of the project, you may be able to give you a holiday after the project is completed. However, this is usually not a good solution if done long term.
Use Budget Reserves (if any)
Management may allow the budget reserve for things that are uncertain and the risks associated with your estimates. Reserve budget is separate from the project budget. If you tend to exceed the budget by estimating the error, you can hit up the budget.
Streamline Process
On longer projects, you can find ways to streamline the project process. The work done more efficiently with time and cost less.
Re-contract negotiations
We can re-negotiate licensing terms and contracts. If using contract labor, you can negotiate cost reductions. Perhaps your software vendor will offer their products at a cheaper price. In many cases, vendors will be willing to trade one benefit to another. For example, labor contracts can be reduced, but they were given an extra hour of work. Perhaps the vendor will provide a price reduction if paid in advance. If exceeds the budget, especially on large projects, you should review all vendors to obtain cost savings.
Review the Return Jobs
if all else fails and you can not get additional budgetary support, you may need to negotiate with the client to reduce some of the work of the project. Maybe there is an option to complete the project within budget with functional less than 100% then implement advanced project to complete the remaining work. This is not the time to start over on budget, but it may be a last resort if all other means fail or are not available.
