Project Cost Management

Project Cost Management is a series of activities for estimating, allocating, and controlling costs within the project. It allows determining and approving a budget for the project and controlling the spending. In construction, project cost management is required to accurately estimate the cost of materials, equipment and people.

Additionally, Project Cost Management is a method which uses technology to measure cost and productivity through the full life cycle of enterprise level projects with specific functions.
Effective project cost management allows a project to be specific and unique because that project entails unique costs and requires specific funding. However, no matter whether you lead a technology development project or construction project you should consider project cost management as a process that consists of the three key steps:

• Cost Estimation – conducted at the planning phase by using manual project cost estimating and management software to develop spreadsheets and make calculations and cost predictions.
  
  
• Budget Determination – the step of the cost management process where you develop the budget framework and determine the actual working budget. The project works in collaboration to determine items of the budget and sources of funding to allocate the budget in cooperation with the project sponsor.
  
  
• Cost Controls – the step of the project cost management process when the allocated budget is reviewed and spending is tracked. The project manager takes responsibility for control spending and to ensure that the budget allocation is optimized and costs are fully covered with the planned and allocated budget.

Beginning with estimating in this session module, you will learn the process and tools to accurately plan all aspects of the project. As a project moves forward, cost control uses data from the estimate with the information reported from the projects performance to measure the actual cost and production of the project. From project initiation to completion, you will learn that project cost management has an objective to simplify and lower the cost of the project experience.

To sign up for this online session module and receive 12 PMI® PDU’s <click here>