What are the best strategies for managing a project budget during high inflation and supply chain gaps?

All answers to this question.

You need to implement Earned Value Management (EVM) immediately if you haven't already. Specifically, look at your Cost Performance Index (CPI) and Schedule Performance Index (SPI) to provide data-driven forecasts to your board. In my recent 2024 projects, I've had to move from monthly to weekly budget reviews to catch variances early. Don't just ask for more money; show the trend lines and the "To-Complete Performance Index" (TCPI). This level of transparency usually builds the trust needed for stakeholders to release additional emergency funds for your project.

   Answered 2024-02-12 by Melissa Stevens

Which specific software are you using for your real-time tracking? Some tools like Primavera or Jira handle resource-costing differently when it comes to fluctuating external vendor rates.

   Answered 2024-02-15 by Christopher Lee

• Christopher, I am currently using a mix of Microsoft Project and custom PowerBI dashboards. The issue is that the vendor rates are changing faster than we can update the baseline. I am looking for a way to automate these updates so the dashboard reflects the most recent quotes. Using API integrations between our procurement system and the PM tool seems to be the only way to keep the data fresh.

     Commented 2024-02-17 by Thomas Wilson

Focus on "Value Engineering." Re-evaluate the project scope to see if there are lower-cost materials or processes that won't compromise the final quality or the project's primary objectives.

   Answered 2024-02-19 by Kimberly Clark

• Spot on, Kimberly. Value Engineering is often overlooked once a project starts. It’s a proactive way to save the budget without just cutting corners or asking for more money from the board.

     Commented 2024-02-21 by David Harrison