Original Budget refers to the initial estimate of costs projected at the onset of a capital project or program. It outlines the financial roadmap for project expenditures including, but not limited to:
It forms a pivotal role in cost management by acting as a benchmark against which project performance is measured.
The Original Budget acts as an accountability tool, aiding project managers, consultants and owners in tracking performance against planned expenses. It encourages cost efficiency and improved financial management throughout the project's life cycle. The Original Budget also serves as an aid in future capital budgeting, which is a process businesses use to evaluate potential major projects or investments.
Equipped with capital program software like Mastt, teams can maintain real-time insight into their budget variance and enact timely, data-guided decisions to optimise their resources and ultimately, achieve project success.