Discussion Question #1:

What is the function of a project budget? Why is it important to include management contingency in a project budget and how you would calculate the amount of contingency needed?

What is the function of a project budget?

When undertaking a project, a budget must be set to assure spending is under control. “…the act of budgeting is the allocation of scarce resources to the various endeavors of an organization”

(Meredith & Mantel, 2006, p.326). The budget is a control mechanism.

Why is it important to include management contingency in a project budget and how you would calculate the amount of contingency needed?