Budgeting for a project : it’s all about balance

by Amandine Barles | Oct 1, 2026

Une calculatrice, des graphiques et des chiffres

A project budget does not need to be unlimited to succeed; this article reviews how the cost-time-quality triangle helps in making smart trade-offs between constraints, and outlines key fundamentals: thinking in terms of investment, building in a buffer for the unexpected, and monitoring the budget at regular intervals to prevent overruns.

Once upon a time...a project without a budget.

Throughout my career, I’ve led transformation projects with multi-million-euro budgets, as well as others where I was told, "We have no budget."
Both scenarios are possible, and both can succeed.
So, to start, let’s use a new metaphor: imagine you want to go on vacation to Cornwall in August without spending a single cent.
Does that sound impossible?
Well, it actually depends on what you mean by "vacation" and "without spending a single cent".
Assuming you live in Europe, you could hitchhike there. It would take longer, and you wouldn’t know exactly when you’d arrive, but you would get there.
You could decide to stay at your great-aunt’s cousin’s house. It might be a bit far from the tourist spots and a bit dated, but it wouldn’t cost you anything.
Then, of course, you’d need to buy groceries—but you’d have to do that anyway, vacation or not. So, does that expense really count as part of the vacation budget?

This project was a real thing.
And no, I’m not talking about my summer vacation.
I’m talking about a project where we decided:
- to change the processes
- to rely 100% on existing teams - no extra budget
- to repurpose software already in use in another division of the company
- to even reuse licenses from employees who left in recent years so as to avoid paying for new ones
And all of this was possible—because we had defined a very clear cost/time/quality triangle.

The cost/time/quality triangle

Behind the concept I try to apply to every project I lead lies a simple principle: it is very difficult to have it all.
If you want to cut costs, you have to accept a drop in quality and longer timelines.
If you want speed, you have to accept that costs will rise and quality may not be top-tier.
And if you want a top-quality project, it is likely to be expensive and take a long time.

Of course, there is room for nuance within this triangle- indeed, the idea is to maintain a healthy balance between the three parameters.
But laying out these elements and knowing how to prioritize them is a crucial step - just as important as defining your objectives.

A project is an investment.

And when you draw up the project budget, that is the perspective you need to take.
You want to transform your company because it is expected to yield some added value in the end.
Whether that value takes the form of immediate, tangible, and measurable revenue, or an indirect indicator (such as market repositioning, sales strategy, or employee retention) that translates into long-term financial health, the principle remains the same: you are investing resources (whether money or time) with the expectation of a return.

So, when you draw up the project budget, make sure to clearly set out:
- the associated risks (we’ll come back to that soon!)
- the expected gains
Once again, I feel like I’m giving you somewhat basic advice, but sometimes it’s important to go back to basics, and stick to them, amidst the whirlwind of strategic shifts, organizational changes, and international crises 🙂

Last but not least : a budget needs a pilot !

I was recently taken aback to learn that, at the table where I was having lunch (there were eight of us), I was the only one with an Excel spreadsheet for my household budget.

By this, I mean that of course, I have a general idea of what I spend on a monthly basis on housing and food. But I also have a clear view of what will happen when we decide to change the water heater this year - and plan to update this view once I receive the quotation from my plumber.

It seems that this is not standard.
So, let’s go back to basics: creating a projected budget for your project is excellent.

But you also need to secure two essential points.

The first point is that, naturally, you haven’t set a budget that is tight down to the very last cent.
You’ve built in a buffer for the inevitable unexpected issues—leaving the door open for a pleasant surprise later on, in the form of substantial savings compared to the initial budget.
The second point is that you keep your budget up to date, in line with the project’s regular milestones (we’ll come back to this, too).

You ensure all stakeholders are well aware of the progress and you will raise the alarm if things go off track (though, since you’ve built in that buffer, everything will be fine, of course!).

En résumé

A project with no budget isn’t an impossible project - it’s simply one that requires creativity, common sense, and a solid grasp of the cost-time-quality triangle.
We don’t always have the means to match our grandest ambitions, but we (almost) always have the means to achieve our specific objectives—provided we are willing to make clear trade-offs.

So, whether your budget is generous or non-existent, the fundamentals remain the same: think in terms of investment rather than expense, build in a buffer for the unexpected (it’s bound to happen), and actively manage your budget over the long haul rather than letting it control you.
A budget is something you build, but above all, it’s something you track, much like that famous household Excel spreadsheet that, apparently, not everyone is keeping up with yet 🙂

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I hope this article gave you some clarity, and I'll see you soon to break down another of the 10 keys to running a strong project!