How to Determine Project Funding Requirements
Project funding requirements are obtained from the cost baseline and occur in increments . These increments are not continuous but they are done periodically , sometimes quarterly or annually , based on the project’s funding requirements .
The total amount of funds includes the cost baseline plus the management contingency reserve.
Project funding requirements help define how much funds are required and when they are required. They also help optimize the fund inflows to the project.
Historical relationships involve relationships that are used in parametric or analogous estimates to develop simple or complex models for calculating project costs .
The cost and accuracy of the parametric and analogous estimate will vary widely. They can be relied upon when the historical information used is accurate , parameter used are quantifiable , and when the models are scalable.
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