The time-phased budgeting process summary

The time-phased budgeting process provides the opportunity for the project manager to allocate project-based costs on the anticipated project timeline. Furthermore, the necessary expenses can be taken into consideration for the selected project activities. This is an essential process that helps estimate the project’s cost and avoid the uncertain risks regarding additional costs. Based on this method, the project manager will be able to determine the actual project cost. With the assistance of a time-phased budget strategy, the project may be capable of reducing the additional source of cost (Fregonara and Ferrando, 2018). As a result, the quality of the business performance can be maintained in the future.

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In addition to that, the three-point estimation technique is an essential process that helps the project manager to calculate cost, time and efforts in the critical task of the current project. Based on this strategy, optimistic estimate, pessimistic estimate, and most likely estimate of the project can be taken into consideration by the management. This helps to provide reliable results regarding the current project cost. Therefore, a suitable strategy to mitigate the additional cost can be taken into consideration. The cost estimation process can be beneficial in understanding the profitability rate of the project.

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