Plan to NOT Be Over Budget

(This is a Black Belt Cost Control Tip. See them all here.)

Let’s be honest. Lots of cultural project teams come up with lots of great ideas, have no idea what it will all cost, and wait until some milestone down the road to find out.

Maybe that milestone is soon. Maybe it’s a year from now. Until then, the team just keeps coming up with ideas. Whenever it is, the bid package gets sent out, and the team waits to see “what comes back”.

Is it any surprise that “what comes back” is crazy high? And the budget axe starts randomly hacking away?

You’re essentially planning to be over budget.

You need to do the opposite. Plan to NOT be over budget.

[Pro Tip: planning team maintains its own internal budget from the start. Estimate all cost lines. Update regularly. Compare to the final price. Get more accurate next time. Repeat.]

Here’s the thing:
Don’t plan, then check. Plan to NOT be over budget. An estimate should verify what you know, not reveal what you don’t.

Warmly,
Jonathan