Project Budget

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on March 01, 2023

Projects are long-term activities that may stretch over several annual budget periods.

The term "project" is used to indicate, for example, the construction of a building rather than a one-off major purchase, normally covered in the capital budget.

The project budget for a long-term project is difficult to prepare for several reasons, including the issues of cost escalation and design changes.

No project will go exactly according to plan. Flexibility and possible re-planning have to be built into the project budgeting process.

Hence, the project budget is essentially a control mechanism to give the organization an early warning about the potential for cost and time overruns.

Project Budget FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.