When we have a good idea for a research or technical project and want to get approval for the money and time it will take to get the project done, we need to present a project proposal. The project proposal must reflect the background and should be logically set out. It is not enough to write a letter stating the request. We have to demonstrate the need and prove that the project is worthy of funding. In addition to specifying the needed allocation of resources to complete the project, proposals must have a budget section. “The proposal budget is a written description of the project in terms of its costs”. (www.du.edu)The budget of a proposed project serves as a blueprint for spending the project’s funds. “Proposals must include a budget, a detailed breakdown of the financial support requested from the sponsoring agency.
The budget should reflect the best estimate of the costs requested to conduct the work outlined in other sections of the proposal”. (www.berkeley.com) If the project is well thought out, the budget will reflect the methodology described within the proposal. Most reviewers will be able to determine if sufficient funds are being requested to successfully complete and project, and that those costs are reasonable given the scope of work. While the degree of specificity of any budget will vary upon the nature of the project and the requirements of the funding source, a complete, well thought out budget increases the likelihood of the proposal being funded. The proposed budget must give an accurate assessment of all cost items and cost amounts. A well prepared budget should be reasonable and demonstrate that the funds being asked for will be used wisely.
The project for the company offsite 2 day training session has given a preliminary go-ahead. The budget of the project will determine any important factors that will impact the training project. The company of AER has given the opportunity for all workers to get the training required. The budget of the 2-day training session project will recover any expenses that occur before the initiation, ...
There are several elements that can be proposed in a budget proposal; itemized budget, non-itemized budget, fixed budget, and flexible budget. Definitions of each element are as follow:•Itemized budget: An itemized listing of estimated or intended expenditures for a given period along with proposals for financing them. (www.thefreedictionary.com)•Non-itemized budget: A non-itemized summary of estimated or intended expenditures for given period along with proposals for financing them.
•Fixed budget: Under a fixed budget proposal, the funding organization obligates a fixed sum of money to support the project.
•Flexible budget: “A budget that shows how costs vary with different rates of output or at different levels of sales volume and project revenue based on these different output levels”. (www.advfn.com)Some funding foundations require proposal must include a budget with itemized listings that justify the need for the requested funds. Generally, most budgets are composed of two kinds of costs; direct costs and indirect costs. Direct costs can be easily identified with a particular project. Direct costs are those expenditures that are made by the project and directly allocable to the project. The direct costs usually include a breakdown of salaries, purchase or rental of equipment, training to use new equipment, office supplies, health insurance, travel, consultant, and fringe benefits.
Direct costs must be considered reasonable, allocable, and allowable to be incorporated into a proposal budget. The items in the indirect costs section will vary widely, but usually represent those expenses that cannot be easily identified to any specific project, such as space costs, utilities, payroll, accounting, security, escalation, administrative operations, and equipment and building depreciation. (www.berkeley.com) Definitions of some itemized listing are as follow:Direct costs:•Salaries: Compensation received by any person through the project payroll system.
Within the vicinity of the barangay IV. Status: This project is new and must be reviewed thoroughly within the council of the barangay and the local government unit. V. Beneficiary: All the constituents will benefit the said project. It will help the barangay in experiencing floods not only cater the amount of waste carried on the drainages. So this project proposal could be a tool in changing the ...
•Purchase or rental of equipment: Any equipment that purchase or rental for the purpose of the project.
•Training to use new equipment: Expenses paid to vendor for the purpose of training employees to use new equipment.
•Office supplies: Postage, photocopying, computers, fax, etc.
•Health insurance: health insurance benefits represent the premium amount paid by the employer for an employee’s individual health insurance coverage.
•Travel: This category refers to foreign and domestic travel expenses associated with project and may include the cost of transportation, lodging, and meals.
•Consultant: A consultant is an independent contractor that provides professional advice or performs professional services for the purpose of the project.
•Fringe benefits: Benefits such as health insurance, workers compensation, State Retirement, disability, unemployment, and Social Security may significantly increase the total cost of personnel.
Indirect costs:•Space costs: The cost of space occupied by project staff.
•Utilities: Electricity, water, gas, maintenance, etc.
•Payroll: Payroll services for the purpose of the project.
•Escalation: The cost that may be added to proposal budget in consideration of the effects of price or cost inflation on current year costs.
The proposal writer must make a conscientious effort to obtain comparable cost information in preparing a budget. All budget items must be carefully delineated and justified, as the budget is a significant factor in evaluating the fundability of the entire proposal. Before the budget is put into final form, it should be reviewed for cost effectiveness.
A budget is the key element of many project proposals. The budget should be complete; it should include all costs of any personnel, supplies, and activities required by the project. The project needs to be feasible within the budget presented. If major cost areas are omitted or underestimated, the project, as proposed, will not be considered feasible. The budget should also be reasonable; it should be based upon actual costs when possible. Reviewers are often familiar with costs that are common to many projects, such as computers, special equipment, travel, and postage. All itemized costs should be based upon available price information. If we are going to be successful in writing proposal to fund projects, we must first establish credibility with the prospective funding foundation.
1. (TCO B) Estimating Procedures (a) You are the project manager for a new high-rise office building. You are working on estimating the exterior landscaping for the new development. The landscaping requires the use of a special landscape stone. Based on recent experience the most likely price for the material is $120.00/ton. However, the price for this stone is volatile, and the price fluctuates ...
There are several formats in writing a proposal. Formats are nothing more than consistency in the way information is presented. In itemized budget, the flow and internal consistency are important factors in project proposals. Therefore, we need to be sure that facts and figures in one section of the proposal are consistent with what we present in other sections. Check and recheck the facts and figures in the proposal to ensure consistency among different sections. Incorrect information, outdated statistics, or irrelevant research will undermine the credibility.
An effective proposal budget outlines a proposed project in fiscal terms and helps reviewers to determine how the project will be conducted. Itemized budget usually reveal whether a proposed project has been carefully planned and ultimately be feasible. Itemized budget information about activities planned and personnel who will serve on the project provides reviewers with an in-depth picture of how the project will be structured and managed.
Budget. Retrieved February 20, 2006, from http://www.thefreedictionary.com/budgetBudget considerations. Retrieved February 20, 2006, fromhttp://www.du.edu/osp/budgetcon.htmlFlexible budget. Retrieved February 20, 2006, from http://www.advfn.com/money-words_term_2006_flexible_budget.htmlProposal budget basics. Retrieved February 19, 2006, fromhttp://www.spo.berkeley.edu/Procedures/budget.html