Cost estimating and budget controls

  • This area of the Lessons Learned repository will include:

    • Whether any unbudgeted costs arose
    • Accuracy of cost estimating
    • How effective we were at managing our budget and maintaining oversight of our spend against it
  • Evidence or Observation Made

    The team identified a need to more clearly assess and express the relative costs of possible product solutions and to weigh these against the strengths and benefits of each offering before a purchase decision is made.

    Response

    Provide clear comparative analysis of the ROI against benefits of each evaluated solution to facilitate informed decision-making by the appointed Project/Programme or Executive Board.

    Evidence or Observation Made

    Not all stakeholders were clear that the product selection represented best value in the longer term.

    Response

    Adopt a lifetime costing approach in evaluation of costs for each possible option identified by the project to strengthen assessment of lifetime value and to ensure that the product and option chosen is sustainable over its whole lifetime.  Talk to you Management Accountant for information on lifetime costing