An effective budget should enable you to monitor progress at each phase and to identify precisely when and why actual expenses vary from your estimate. Thus, your budget cannot be constructed on an overall project basis; it needs to be broken down by phase. All of the budget elements—labor, fixed expenses, and variable expenses—will vary according to the demands of each phase. Some phases will move along relatively quickly and will require minimal team involvement and little or no expense. Others will run to many hours, involve the use of internal and external resources and facilities, and need more detailed monitoring. To identify problems expressed as budget.
