#You need a budget cost how to

We also have a large guide to the Project Business Case. It is one of two primary control documents for the financial aspects of your project вЂ“ alongside your Business Case. This sets out the вЂrules of the roadвЂ™ for how you are going to establish and manage your project costs. I view project cost management as a master process, which you would document in your Project Cost Management Plan. Which actually covers monitoring, controlling, reporting, and responding to cost variances and the issues that link to them The 6th Edition of the PMBOK Guide has 4 processes in the Project Cost management Knowledge Area. PMBOK 6 divides Project Cost Management into Four Processes And I do hope that the PMI finds a way to retain all of the good content, when it pivots to what I expect to be a radically different PMBOK 7.

There are few ways in which I think the PMBOK Guide excels over similar methodology guides. This is even to the extent of its absence from the glossary!

#You need a budget cost how to

However, PRINCE2 has little to say about how to carry out financial and cost management. It appears in the guide of the first of the 7 PRNCE2 themes: Business Case.

With its strong focus on Project Governance, I find PRINCE2 shockingly and lamentably light on the topic of Cost Management. However, the APMBoK does largely skip the whole topic of cost control вЂ“ save for a passing reference to Earned Value Management (EVM). But, at Section 4.8.2, we find Cost Planning. The 7th Edition of the APM Body of Knowledge is more of a pointer to what you need to learn, than a reference source.

That may change with the publication of the 7th Edition of the PMBOK Guide. It was one of the original 9 KAs in the first edition. The Project Management InstituteвЂ™s (PMIвЂ™s) Project Management Body of Knowledge (the PMBOK Guide) has long had Project Cost Management as one of its ten Knowledge Areas (or KAs). All Major Project Management Approaches should Tackle Project Cost Management For example, many Agile Project Management approaches take a very вЂlight-touchвЂ™ approach to cost estimating and planning. However, the extent to which you will apply them can vary. These components appear in whatever methodology or approach you choose for your project.

Monitoring and Controlling project expenditure to adhere to your budget.

Estimating and Planning costs and creating a project budget from them.

Project Cost Management is a process that has two principle components:

Tailoring your project cost management process.

Monitoring and controlling project expenditure.

The governance considerations for project cost management.

Establishing your costs вЂ“ the processes of estimating and budgeting.

So, in this feature article, weвЂ™ll look at: Once set, you must respect it, and deliver to it. And others have an absolutely firm deadline that makes schedule their essential priority.Д«ut, for some projects, quality can flex a little, and timescales can slip if they must. Some projects are all about delivering your scope to an absolute set of quality standards. We know that projects have different priorities вЂ“ best understood through the Iron Triangle of time, cost, and quality.

When Project Cost Management is Essential Instead, you must act with determination to understand project cost management and implement all the tools at your disposal to control costs and bring in your expenditure on budget. Project Cost Over-runs are Common.Д«ut this is not a cause for a defeatist attitude. But thereвЂ™s little your project sponsor, your client, or their Finance Director care about more than your budget and how closely you can stick to it. It feels complicated and has the mystical air of mathematical magic and wizardry. Project Cost Management often puts people off.