Project budgeting: the key to bringing business projects in on-time and on-budget

The use of functional budgeting and inappropriate management techniques on development projects often cause problems such as low-quality products or results, runaway costs and poorly motivated work groups. Functional budgeting differs from project budgeting in terms of repetitiveness, basis, risk and type of budget. Managers should keep in mind these differences in development projects. Assuming that other management variables are under control, the appropriate budgeting approach ensures that projects are delivered on time and within budget.