Project Cost Management

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 free downloadable templates. 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

  • Planned,
  • Structured, and
  • Controlled.

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

Cost ManagementWell, 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.

Learn more about Cost Management

To solve this problem and to implement the strategic approach, Edward Blocher, David Stout, Paul Juras and Gary Cokins have published their excellent book “Cost Management: A Strategic Emphasis 7th Edition“.

Amazon book description:

Cost Management: A Strategic Emphasis, by Blocher/Stout/Juras/Cokins is dedicated to answering the question: Why Cost Management? Blocher et al. provide the cost-management tools and techniques needed to support an organisation’s competitiveness, improve its performance, and help the organisation accomplish its strategy. The text is written to help students understand the broader role of cost accounting in helping an organisation succeed – and not just the measurement of costs. While the text does include coverage of traditional costing topics (e.g., job-order costing, process costing, service-department cost allocations, and accounting for joint and by-products), its primary strength is the linkage of these topics, as well as more contemporary topics, to an organisation’s strategy. This message is reinforced by a dynamic author team, all four of whom have close ties to current cost management practice.


Download area Project Cost Management Templates

Free Project Cost Management Plan Template

Name:Project Cost Management Plan Template
Prepared by:Marc Arnecke, PMP
Subject:The Project Cost Management Plan is a component of the Project Management Plan that describes how costs will be planned, structured, and controlled.
Created:05/11/2014
Last Modified:16/03/2018
Link:download Project Cost Management Plan Template (PMBOK®)

Download the Feasibility Estimation Sheet

Name:Feasibility Estimation Sheet
Prepared by:Marc Arnecke, PMP
Subject:The Feasibility Cost Estimation sheet is an Excel sheet used to determine the economic feasibility of a project, more specifically the cost of a construction project.
Created:05/11/2014
Last Modified:05/06/2018
Link:download Feasibility Estimation Sheet

Download the Activity Cost Estimation sheet

Name:Activity Cost Estimation sheet
Prepared by:Marc Arnecke, PMP
Subject:The activity cost estimate is the approximation of the cost of an activity that aggregates to the total cost of a deliverable and consequently the project. The sheet is the product of the cost estimating process.
Created:05/11/2014
Last Modified:05/06/2018
Link:download Activity Cost Estimation sheet

Download the Project Budget sheet

Name:Project Budget sheet (EXCEL)
Prepared by:Marc Arnecke, PMP
Subject:The project budget sheet is a financial plan for the project life cycle period. The sheet is the product of the determine budget process.
Created:12/02/2015
Last Modified:20/09/2018
Link:download Project Budget sheet

More templates are waiting here for you:

16 Comments

  1. Hello, Marc: I am developing a graduate level Project Cost Management project management course at Bellevue University, Bellevue, NE as a part of the University’s Project Management Graduate Degree Curriculium. Please reply to my email address to let us know whether you give BU permission to use a customized version of your Cost Management Plan Template for graduate students to complete as a requirment for completing the course?
    Thank you,
    Dr. Robert W. Zapf, D.M., PMP®, MCT®
    Adjunct Professor, Project Management
    Bellevue University

  2. Thank you very much, The template is very much useful and appropriate to the current project we want to propose.

  3. I am new to project management and the templates are a great help and starting point for me. Thank you.

  4. Its not my first time to go to see this site, i am visiting this web
    page dailly and take fastidious information from here daily.

  5. I’m not ѕure wherе you are getting your information, but good topic.
    I needs to spend some time lеarning morе or understanding more.
    Thanks for magnificent info I was looking for this info for my misѕion.

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