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 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

  • 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

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.

I Recommend this Book:


Download area Project Cost Management Templates

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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.

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  5. I’m not ѕure wherе you are getting your information, but good topic.
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