Realistic COST BASELINE...!!
First step to avoid Cost Overruns is by arriving and adhering to a Realistic COST BASELINE in the Project...
Most of the Time it does occur that we become over Optimistic and set Unrealistic COST BASELINES to get a token of appreciation / recognition from Top Management.
This is a Contagious disease affecting Project health and it so happens that irrespective of performance of the project the same Cost Baselines are adhered too.
That is at any stage of review, Estimates to Complete (ETC) Costs are back calculated to fit into the Cost Baselines rather than Highlighting the TRUE Picture
Its only during, Testing & Commissioning Stage that this Cost Overruns normally pops out, by which its too late to recover...!!
Most of the Time it does occur that we become over Optimistic and set Unrealistic COST BASELINES to get a token of appreciation / recognition from Top Management.
This is a Contagious disease affecting Project health and it so happens that irrespective of performance of the project the same Cost Baselines are adhered too.
That is at any stage of review, Estimates to Complete (ETC) Costs are back calculated to fit into the Cost Baselines rather than Highlighting the TRUE Picture
Its only during, Testing & Commissioning Stage that this Cost Overruns normally pops out, by which its too late to recover...!!
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