The paper is focused on software development project’s budgeting procedure. Software development costs are listed and salary expenses are highlighted as the main expenditures of a software development project. A research hypothesis is formulated and a method for validating the hypothesis is proposed. Data from a real-life project is used in order to obtain measurable results. The basic unit for a software development project is depicted as being the hourly billable rate of a project team member. An indicator for measuring the hourly billable rate is defined. The budget for a real-life software development projects is defined. Cost control procedures are defined. Cost control procedures are tested using data from a real-life project. Budget update methods and parameters are formulated. Budget update methods are tested using data from a real life project. Conclusions regarding cost control and budget update are formulated based on results obtained in the project that is being analyzed. In order to access the full paper please contact the author using the Contact form.