BUDGET ASSESSMENT FOR INVESTMENT-CONSTRUCTION AND DEVELOPMENT PROJECTS (THEORY AND PRACTICE)

Abstract

The practical value of standards in the field of project management is often discussed by specialists in various fields of project activity. Practicing project managers at the lower and middle levels often complain about the lack of clear and effective tools for solving specific problems of the project management execution. However, the skillful standards application may increase the success likelihood of a wide range of diverse projects with obtaining the expected business values “at the output” of the project. The systematic experience of the best specialists, acquired during the implementation of various projects and placed in the standards, can become the basis for the professional competencies development and the formation of competitive advantages for project companies in various industries. The aim of this study is to establish links between the methods recommended by the Project Management Body of Knowledge (PMBoK) for determining the budget of projects and the methods used in practice for determining the cost of construction projects, formalized in the current regulatory documents and state building codes of Ukraine. To this end, the PMBoK standard determined the basic methodological foundations of the project cost management process, its components and characteristic features. Then, based on recent publications and building standards, the main stages of the life cycle of construction projects were established, in which the cost of design work is assessed, the goals of such an assessment and the project participants that carry it out are determined. As a result, a complete methodological identity was established between the project cost estimation methods recommended by the PMBoK standard and the construction cost determination methods specified in the current regulatory documents of the Ukrainian construction industry, which confirms the full suitability of the PMBoK standard for use in construction project management practice. Research findings determine the use of the standard by both novice specialists and qualified project managers of construction projects.