Spenddepends

Spenddepends is a conceptual framework used in budgeting and project finance to describe and quantify how spending on one element depends on costs or milestones of other elements. It represents expenditures as part of a dependency graph where nodes are budget items and edges reflect conditional relationships. For example, module development costs may not incur until prerequisite platform work is completed. The framework distinguishes spend drivers (labor, materials, overhead), triggers (milestones, approvals, external funding), and lag times between a trigger and actual disbursement.

The model supports cash-flow forecasting and scenario analysis. By mapping dependencies, organizations can identify critical spend paths, potential bottlenecks, and financing risks. It is commonly implemented in project management and financial planning tools via dependency graphs, Monte Carlo simulation, and scenario planning.

Applications include large capital programs, software development with staged funding, grant administration, and procurement planning where disbursements are release-based. Benefits include improved visibility into timing, better alignment of cash with project schedule, and enhanced ability to stress-test budgets. Limitations involve data requirements to accurately capture relationships, model complexity, sensitivity to assumption changes, and potential mis-specification of dependencies.

Critiques emphasize that spenddepends relies on static representations of dynamic processes and should be complemented with qualitative governance and risk management. See also dependency graph, critical path method, earned value management, cash flow forecasting, budget planning.