The completion of any project within its budget is a central objective of project management. Budgeting is the process of estimating as accurately as possible, against a clear baseline, the costs that one may reasonably expect to incur, understanding how and why they do actually occur, and ensuring whatever prompt response is required to keep them within the agreed budget. In order to be successful, cost management needs to be forward-looking.
A BRIDGE program, which includes a management component and a series of workshops, will have to be broken down into its constituent elements.
|Refer to: 8.4 Annex 4: Potential Cost Items of a BRIDGE Program for a comprehensive list|
Typical budgetary management includes establishing estimates and forecasts; obtaining and recording commitments or accruals; measuring work accomplished and value earned, including treatment of changes (change control) and claims; and checking cash flow.
Should there be funding problems, cuts may have to be considered and credits reallocated or alternative financing sought, with the agreement of the donor(s).
The issue of payments to facilitators (and participants) can be quite a complex one. It is therefore essential that the terms and conditions of any financial support be clearly defined from the outset. Because payments may often be made in different ways, with rates varying between people, explaining their delivery models and rationale is necessary. The following specific issues would require consideration:
There should be some form of written agreement, for example, a Memorandum of Understanding (MoU), Record of Understanding (RoU) or exchange of letters, to finalise the details agreed upon between the main stakeholders – typically, donors, project team and clients. All stakeholders should be involved in its development.
Such an agreement should specify clear outcomes and deliverables, and determine the responsibilities of the implementing agency, the donors, any consultants, and the client organisation. The following elements could be included:
|scope of services||preamble (introduction)||suspension or termination|
|fees, payment audit and financial records||taxes, duties and charges||intellectual property|
|relationship with foreign government||delivery models||anti-corruption|
|agreement to adhere to BRIDGE rules and policies||reporting requirements||budget|
|variation/revision||log frame||confidentiality and public comment|
|provisions for amendments and extensions||outcomes||liaison|