Why does a project's budget only face scrutiny once it's already in trouble?
Here are some proactive budget strategies to use before it's a lost cause!
𝐒𝐞𝐞𝐤𝐢𝐧𝐠 𝐦𝐮𝐥𝐭𝐢𝐩𝐥𝐞 𝐛𝐢𝐝𝐬 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐛𝐞𝐠𝐢𝐧𝐧𝐢𝐧𝐠.
▫ You may have a preferred vendor in mind, but a second opinion can help ensure you get the best scope/price agreement.
▫ Don't wait for the finance department to ask for a second & third bid!
𝐃𝐞𝐜𝐨𝐧𝐬𝐭𝐫𝐮𝐜𝐭𝐢𝐧𝐠 𝐛𝐢𝐝𝐬 𝐢𝐧𝐭𝐨 𝐥𝐚𝐛𝐨𝐫/𝐦𝐚𝐭𝐞𝐫𝐢𝐚𝐥𝐬.
▫ Look for transparency and give the same in return, where appropriate.
▫ This will also help clarify schedules by better understanding labor timing.
𝐁𝐮𝐧𝐝𝐥𝐢𝐧𝐠 𝐬𝐞𝐫𝐯𝐢𝐜𝐞𝐬.
▫ This is a good way to get better pricing on multiple line items
▫ The risk here is "all eggs in one basket". If your vendor underperforms, you take a double hit
𝐎𝐟𝐟𝐞𝐫𝐢𝐧𝐠 𝐟𝐚𝐯𝐨𝐫𝐚𝐛𝐥𝐞 𝐩𝐚𝐲𝐦𝐞𝐧𝐭 𝐭𝐞𝐫𝐦𝐬.
▫ Getting paid faster MATTERS. Many vendors will accept lower pricing for faster payment (including me).
▫ Make sure you actually DO pay in agreed-upon terms.
𝐂𝐫𝐞𝐚𝐭𝐢𝐯𝐞 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐧𝐠.
▫ There are a lot of options under this topic!
▫ In the same way car dealers accept lower pricing for finance agreements, vendors may accept lower prices on core offerings in exchange for interest over time.
𝐎𝐭𝐡𝐞𝐫 𝐧𝐨𝐧-𝐬𝐭𝐚𝐧𝐝𝐚𝐫𝐝 𝐩𝐫𝐢𝐜𝐢𝐧𝐠 𝐚𝐫𝐫𝐚𝐧𝐠𝐞𝐦𝐞𝐧𝐭𝐬.
▫ Industry or project specific.
▫ In telecom, it's difficult to sequence multiple jobs without some down time. Paying GCs on 'retainer' can be mutually beneficial. It just means you have to be ready to keep them busy!
Too often, project teams wait until they're under water to manage budgets!
𝐆𝐞𝐭 𝐜𝐫𝐞𝐚𝐭𝐢𝐯𝐞, 𝐛𝐞 𝐩𝐫𝐨𝐚𝐜𝐭𝐢𝐯𝐞, 𝐚𝐧𝐝 𝐞𝐱𝐩𝐞𝐜𝐭 𝐭𝐡𝐞 𝐮𝐧𝐞𝐱𝐩𝐞𝐜𝐭𝐞𝐝.
