Difference between project costs and the project budget. Please help.

Dmt Nelson

122 points

What is the difference between project costs and the project budget?

Cost Management

Financial Management

Posted 3 years ago. 4626 views.

3 Answers

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126 points

Project Cost = Sum(Estimated Work Package Cost) + Contingency Reserves for Know Unknown Risks
Project Budget = Project Cost + Management Reserves for Unknown Unknown Risk

- 3 years ago.

Vlasov_Yuriy

27 points

Project costs are individual or aggregated cost estimates for work to be done on the project, on the project; budget represents these costs over time.

- 3 years ago.