Budgeting and planning are crucial for managing your large and complex projects, often carried out over a longer period. It’s important to have a flexible enough system for forecasting that allows for multiple budget versions, as change orders and other unforeseen circumstances can significantly impact the original budget. Those change orders must be handled separately from the original contract. A project hierarchy that breaks down a project into smaller, more manageable components, such as tasks, and milestones allows for better organisation and control of the resources.
Purchasing and cost control is a key responsibility for the project manager, who needs to have a comprehensive overview on a single dashboard to identify risks and to get notifications when cost approaches budget commitment. Often there are several parties involved, with their own purchase commitments and remaining deliveries. This information must be easily compiled for ongoing forecasting reports.
Subcontract(or) management involves ensuring that they meet the specific requirements regarding insurance, certificates, and contractual arrangements. In some countries there’s an obligation to withhold taxes to subcontractors, which is to be paid directly to the Tax Authorities.
Despite invoicing at a fixed price, you need to keep track of your milestones, payment plans, and your project completion as Progress or Application billing is one commonly used method for invoicing.