Wie kann man die angemessene Höhe der Finanzierung für ein Projekt bestimmen?

Scope definitions notion and breakdown helps to define work packets, skills and effort, which helps define and estimate cost. Risk, time line and other factors determine the final cost estimate.

I have found that to keep costs under control it is key to align requirements with the threshold clearly defined in the initiating documents or project scope. When dealing with the change management aspects, I have had success with having the senior stakeholders determining whether modifications are required to meet the defined threshold or if it is more aligned with a higher end objective. If the former, I believe project managers have an obligation to clearly articulate the trade-offs… if the latter, as project manager I would recommend application of the proposed change to a latter iteration, if possible.

Achieving the appropriate level of funding for a project is a multifaceted endeavor, requiring a thorough understanding of both the project's scope and its potential impact. By meticulously assessing the project's objectives, timeline, and resource requirements, one can develop a comprehensive budget that aligns with strategic goals while also accounting for potential risks and contingencies.

To me, figuring out what to do starts with understanding the problem. While many focus on solutions, I'm all about identifying problems because that's where real change happens. So, ask yourself: Why am I doing this project, and whose problem am I solving? This helps avoid falling for flashy solutions and clarifies who's involved. Plus, it stops outside partners from selling you stuff you don't need because you already know what you're looking for.

Understanding the scope of the project is the foundation for accurate cost estimation. Clearly defining the project's objectives, deliverables, and expected outcomes will help in addressing the appropriate funding level.

Once your organization's strengths and weaknesses are clearly outlined, segment your budget to allocate more resources to address weaknesses. For instance, a company with stronger bargaining power in the supply market may tighten the budget for material consumables, while a company with weaker equipment resources may need to be generous with its rental budget.

Budgets at the start of a project should account for the unexpected, as it's hard to anticipate everything before you start. That being said, plan to be surprised, and make provisions for those unexpected elements that might arise so you won't miss your targets. Create your target budget, but build a structure that allows some flexibility so you are able to pivot if needed as the project gains momentum.

Cost estimation for projects can be tricky, especially if it's something new. In our case, when we pitched our Biogas Refining plant on our patented technology, we absolutely had no clue how to prepare exact costings for the same. However, after successfully commissioning the first project, we now know how to do that. 1. Divide the costings into 3 parts A. Bill of Material B. Installation & commissioning C. Administrative expense 2. After expanding the major heads and listing down all costs, Include a 5%-7% 'deviation' expense in each head. This will protect you from any deviations caused during project execution. 3. While quoting the client, there must be A B C D (D = Organisation margin) I hope this will help.

Once established the scope of the project, among serial of methods, my preferred for evaluating costs could be: - Bottom-up estimation involves breaking down the project into smaller tasks or components and estimating the costs for each individual element. These estimates are then aggregated to calculate the total project cost. This provides a granular understanding of costs, making it suitable with a clear breakdown of tasks. - Scenarios : the most optimistic, most likely, and most pessimistic. These estimates are then combined to calculate an expected value, often using techniques like PERT. Three-point estimation is useful for projects with high uncertainty as it accounts for potential variability in task durations and costs.

Maximum from the minimum is what I hear everywhere for a project or a startup, because no matter what, money will always be a scarce resource and the only resource sensitive enough to alter the whole outcomes and behaviour of your team. First the estimations are from layer zero, try to put in costs that answer this, "Which components are a must need that do the bare minimum?" That sets your first layer, go on second layer by answering this "What components I can add value with?" And subsequently add layers till you reach by how can you make it unique and the only one that serves a role where no other does. Hope that helps.

Indeed, integrating contingencies into the cost estimate is a crucial aspect of robust project planning. This proactive measure ensures financial readiness to navigate unforeseen circumstances, distinguishing it from reserves tailored for known risks. The variability in contingency percentages, reflective of a project’s scale, duration, novelty, and complexity, underscores the need for a tailored approach. It's a strategic method to safeguard against the unpredictable, ensuring that projects remain on track financially even when faced with uncertainty. This practice not only mitigates financial risk but also enhances the project's resilience and adaptability.

I believe the contingency budget is important not just to cover unforeseen challenges and risks but also to enable the business to quickly capitalise on unexpected opportunities that may arise throughout the year. This is so critical in the fast moving world we live in, specially with the advent of generative AI and technological advancements, nearly every single industry is continuously being disrupted, offering endless opportunities for growth. We live in exciting times and the contingency budget is important both as a safety buffer and as a growth enabler for when new unforeseen opportunities arise!

Build flexibility and contingency into the funding plan to accommodate unforeseen changes or evolving project needs. Having reserves or access to additional funding sources can help mitigate risks and uncertainties.

Be strategic about how you present contingency. Lump sums scare stakeholders. Itemizing potential risks ('vendor delay could add X days of labor,' etc.) makes it feel less arbitrary and opens the door for negotiation. Can you get sign-off on smaller contingency with a plan to revisit if certain risks materialize?

Contingencies should be like a rubber band, it needs to fit, be flexible, expand and shrink as needed, and most importantly be resilient when put to use. They should adjust as the needs of the project varies. Responding to unknown unknowns can be a daunting task so always plan for a realistic and reasonable contingency that takes the project size, duration, complexity, and novelty into consideration and plan accordingly to mitigate any known risks with budgeted reserves delineated from contingencies.

"Beginning with end in mind" helps in identifying appropriate funding for the project. It's important to prepare possible scenarios while preparing the project plans. Creating projections of what needs to be achieved and how it needs to be achieved, helps in estimating funding requirements. Once the funding requirements are approved and project gets kicked off, it's important to keep tab on the actual expenses vis-a-vis projected expenses to ensure that project gets completed within the appropriate funding.

Understand your organizational North Star and the levers that contribute to it. Define the lever that you control directly using a metric. Then baseline that metric and set a realistic goal against it. If your contribution to the strategy cannot be quantified as clearly — if it’s a launch goal or a research goal for instance — then define your success accordingly. Regardless, ensure that what you are working on accrues to the organizations success and if you cannot, chances are you aren’t working on the right priority.

The vision and strategic priorities of the project owners is the main aspect to check before adding one cent in a project On the other side how this project will provide a different service in the marketplace

Unless a project propels the company objectives and strategy, it’s not a viable project. Ensure your executive sponsor has articulated the resulting value the project will produce at the very early stages. Remember, it’s not about the project. It’s about the expected outcome/benefit.

Ensure that the project's funding aligns with the overarching organizational strategy. Connect project goals with the broader strategic objectives to justify the financial investment and emphasize its contribution to the company's success. Example: Highlight how the project aligns with the company's mission and strategic priorities.

Regularly review the project's financial status and adjust the budget as needed. Periodic reassessments allow for corrections based on changing circumstances, helping to maintain financial alignment with project goals. Example: Schedule quarterly budget reviews to assess spending, adjust allocations, and ensure financial alignment with project milestones.

Refine the funding requirements based on feedback and adjustments to the project scope, cost estimates, or other factors. Document the finalized project budget, including all cost estimates, funding sources, contingencies, and assumptions. Communicate the budget to relevant stakeholders to ensure transparency and accountability.

Once the project has been approved and funded, that is the only the beginning. It is even more important to monitor what the actual costs are and identify any cost overruns and present them to management as soon as they are identified. It is also important to review project costs with management regularly, you are more likely to gain support to either adjust the budget or receive additional funding to complete the project by bringing cost issues to management quickly.

This is critical in ensuring that projects are delivered on time and within budget, I cannot stress enough the importance of daily review of actual costs to budget and daily re-forecasting as this also allows you to be well prepared in advance for contingencies.

Seeking input from stakeholders such as sponsors, project Team members and experts throughout discussions on scope, requirements, risks and expected outcomes will aid in the analysis and calculation of appropriate level of funding.

During the project planning and budgeting stage, often discussions with the leaders of the company or the project will benefit the whole project process. Get few people who support the project and have deep understanding the history, human relationship in the project, and expectation of the project will benefit everyone.

There is no free lunch. For each type of funding you will have to give something back, it’s either your work, your focus or your share of the company. Measure the hidden cost beyond money and you will find the true value of what you’re giving in return.

Apart from all the above points you could also check and evaluate if a similar kind of project has already been implemented in the past and review its results. By scrutinizing the execution and outcomes of similar initiatives, organizations can gain invaluable insights that inform better decision-making, from identifying potential pitfalls to recognizing effective strategies that pave the way for smoother implementation and greater impact

You probably can’t yet. Next question? … the budget on day one is a prayer. Please Lord, make this work without my having to request an increase. There is nothing wrong with prayer, but call a psalm a psalm. Start adding an asterisk and cite pending updates to the estimate. Make change and evolution the expected norm, not the surprise nobody wants to deliver. And when someone tells you they KNOW what it will cost without the benefit of having done it before. In the same decade. With the same tech. And team. Run don’t walk. The humble project manager who shakes in their sketchers while telling you their estimate is probably low and likely to fluctuate within the first quarter deserves a raise for not jerking your chain. But you knew that. :)

Get market estimates of the high, medium and low scenarios through pre launch testing like conjoint analysis. Then you can scale up your funding as you see the value of the opportunity .