As a project manager, you will face both at some time in your career. Bottom-up approach: estimating the project's total cost by costing the lowest-level work packages and rolling them up.īoth approaches have their advantages and disadvantages.Top-down approach: deciding how much the project will cost and dividing the cost between the work packages. ![]() There are two approaches you can take when creating a budget: It can be a daunting task, especially for new project managers however, once you have created your first budget, you will have an approach to use, and it will become easier for future projects. Project managers are accountable for their budget estimates, and with so much uncertainty in projects, it can be one of the project managers' most significant challenges.Ĭreating an accurate budget is an essential skill for a project manager. ![]() It isn't easy to know how much it will cost when starting a project.
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