Define the budget in effect at project launch
The case sheet
Practical sheet REF: FIC1665 V1
Define the budget in effect at project launch
The case sheet

Author : Jean-Pierre PAYRE

Publication date: August 10, 2019 | Lire en français

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2. Define the budget in effect at project launch

When the project is launched and the various activities and tasks to be carried out are reviewed in detail, the budget as sold can be updated to take account of the industrial layout in place and the management of provisions.

The current budget is also updated when the customer requests an amendment, taking into account the costs associated with these requests.

The current budget must in principle be covered by an increase in the sale price of the business, which is obtained through negotiation and acceptance of contract amendments by the customer.

A new ratio (total sales price including base price and various riders / total cost) gives the new project margin.

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