# Introduction

For some projects, cost isn’t an issue. You try to achieve your project goals while someone else worries about the budget. But if you’re working with a limited budget or need to monitor costs throughout the project, you probably want to reduce costs to a minimum.

Before you can reduce costs, you need to know which factors contribute to the overall cost of your project. Typically, resources — people and equipment — take the largest bite out of a project budget. Keeping resource costs under control should be your highest priority if your budget is very tight. In addition to resources, materials and facilities can also add to project costs significantly.

Usually, the larger your project, the more it costs. You need more resources, materials, and possibly more facilities. To reduce costs across the board, you might consider cutting the project scope.

If you can’t cut the project scope or if costs aren’t reduced enough when you do cut the scope, look for specific costs that you may be able to reduce or eliminate. First check to see where your costs are coming from by examining total project cost, task costs, cumulative costs, and resource costs. As you pinpoint unnecessary costs, you can use one of several specific strategies to reduce or eliminate them.

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