Cost Analysis – The cost component of a project

Cost Analysis
The cost component of a project must be carefully planned and managed throughout the life of a project. First, a budget must be established for the project. The selection of vendors involves a careful process of considering reputation, scope of work to be done, and time required to completion. Risks and uncertainty should be factored in to the plan. As the project progresses costs need to be monitored and controlled.
For projects in general, what are some of the considerations that must be factored when preparing a budget? What are some of the risks that must be considered in selecting vendors and dealing with unexpected external events? As the project progresses, what are some of the strategies for reducing unexpected costs?
Continuing with your personal project from weeks 2 and 3. Prepare a budget of all costs associated with the project. Discuss what factors and risks may affect the costs? What are some of the strategies you can implement to reduce unexpected costs?

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