Thanks for your interest in Project Cost Management (PMBOK®). You find hereafter the definition and the processes involved in Project Cost Management (PMBOK®) as well as a link to free downloadable templates in the download area on this page. I developed the templates over time from real life documents. You find the download links in the download area at the bottom of this page.
It is important to prepare a solid Project Cost Management Plan. The Project Cost Management Plan includes the details how cost will be
- Structured, and
The Project Cost Management Plan is a component of the Project Management Plan.
Definition of Project Cost Management
The PMI™ defines Project Cost Management as:
Project Cost Management includes the processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget. (PMBOK® Guide)
Project Cost Management Processes
The PMI™ defines the processes as follows:
- Plan Cost Management
- Plan cost management is the process of defining how the project costs will be estimated, budgeted, managed, monitored, and controlled.
- Estimate Cost
- Estimate cost is the process of developing and approximation of the monetary resources needed to complete the project works.
- Determine Budget
- Determine budget is the process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.
- Control Cost
- Control cost is the process of monitoring the status of the project, to update the project costs, and manage changes to the cost baseline.
Project Cost Management – the right way
Well, obviously you want to know, otherwise you wouldn’t be here and getting information about cost management. Managing the cost of a project is often one of the biggest challenges. Medium-sized companies make many mistakes in cost-cutting. The results are often below expectations.
Often an engineer fulfills the project manager role in construction projects. Surely there is nothing wrong with that. However, it appears as if their focus is very often on technical project realization. However, some project managers neglect that project management primarily requires strategic thinking. This should not be a luxury.
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Download area Project Cost Management Templates
- download Project Cost Management Plan Template (PMBOK®)
- download Feasibility Estimation Sheet
- download Activity Cost Estimation sheet
- download Project Budget sheet