Budgeting, risk assessments, and contingency planning

Defining Budgeting: Budgeting is essentially planning the usage of resources, especially money, in advance.
Purpose: In the context of a commissioning brief, budgeting helps determine the feasibility of a proposal, based on available finances and expenditures.
Creating a Budget: For creating a budget, list down all elements of the proposed project and their respective costs, ensuring comprehensive coverage of all aspects.
Prioritising Expenditure: Decide what costs are essential and unavoidable, and which ones have the possibility to be reduced or eliminated altogether.
Allocating Funds: Distribute the budget based on the importance and cost of each element. This should be done while keeping the total budget constraint in mind.
Review and Adjust: During the project, continually monitor the actual expenditure against the budgeted amount, making adjustments where necessary.

Risk Assessment Definition: Risk assessment involves identifying, evaluating, and prioritizing potential risks that could disrupt the project.
Purpose: It is crucial to proactive planning, as it helps prepare for possible roadblocks or unforeseen events and mitigate their impact.
Risk Identification: Identify the potential risks at the outset. These could include financial instability, delay in execution, technical failures, among others.
Risk Evaluation: Determine the likelihood of each risk, its potential impact, and the measures needed to control or mitigate it.
Risk Mitigation: Once risks have been evaluated, develop strategies and plans to manage the risk. This could be through reduced spends, insurance, backup plans, etc.
Monitoring and Reviewing Risks: Risks need to be continuously monitored throughout the project and plans updated as necessary.

Defining Contingency Planning: Contingency planning involves having alternative strategies or plans in place for dealing with possible negative (or sometimes even positive) events.
Purpose: A contingency plan can help quickly navigate difficult or unexpected situations, promoting the smooth running of the project regardless of obstacles encountered.
Formulating a Plan: Identify the potential scenarios that might require a contingency plan, and develop strategies for managing each of them.
Backup Resources: Include the availability and allocation of backup resources such as additional staff, extra budget, external contractors, etc.
Plan Communication: Ensure that all relevant parties are aware of the contingency plan and understand what to do when it needs to be put into action.
Review and Refresh: Remember to revisit and revise the contingency plan regularly to ensure it’s up to date and relevant.