ABSTRACT
The budget management process is a secondary component of the overall project execution process. Similar to any business process, a prudent fiscal management process is required to operate within budgets. The focus of cost control for project leaders is generally on the variable cost streams, which include the following:
1. Wages and salaries 2. Managing employee turnover 3. Waste management and rework 4. Competitive pricing structures 5. Cost escalation from lagging labor productivity 6. Cost associated with project schedule slippages 7. Managing project scope 8. Treating expenses associated with safety as a benefit as opposed to a
cost
Wages and salaries are an important element of the overall project budget. The ideal situation is to pay workers fairly based on industry standards. Ideally, in a steady-state operation an employer should seek to position wages and salaries marginally above industry average, allowing noncash benefits to promote market advantages for wages and salaries to the organization.
