5.4.4 Sample Project Budget 2*

The second sample budget, shown in Table 4.2, takes the total planned expenses identified in Table 4.1 and compares these figures against actual accrued project expenses. This budget can be used for variance reporting through periodic updating to show differences, both positive and negative, between the baseline budget assigned to each activity and the actual cost of completing those tasks. The benefit of such a budget is that it offers a central location for the tabulation of all relevant project cost data and through comparisons between planned and actual budget expenditures. It also allows for the preliminary development of variance reports. The disadvantage of using a static budget document such as the one shown is that it does not reflect the project schedule and the fact that activities are phased in, following the network's sequencing. Hence, as a period-to-period control document, this form of budget may not be as effective a control device for the project as a time-phased budget that allows the project team to evaluate budgets in relation to the schedule baseline.

Table 5.2 Sample Budget showing Planned and Actual Activity Costs

Budget
Activity	Planned	Actual	Variance
Survey	5,000	4,250	750
Design	8,000	8,000	- 0 -
Clear Site	5,500	3,500	1,500
Foundation	6,500	8,500	(2,500)
Framing	12,000	11,250	750
Plumb & Wire	5,000	5,150	(150)
Total	41,000	40,650	350

*Please Note: Activity designations for this sample budget were adapted from Pinto, J. K. (forthcoming). Project Management: Achieving Competitive Advantage. Upper Saddle River, NJ: Prentice Hall.Used with Permission.