Project Cost Management Approach Essay

Project Cost Management Approach Essay

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The Cost Management Plan clearly defines how the costs on a project will be managed throughout the project’s lifecycle. It sets the format and standards by which the project costs are measured, reported and controlled. The Cost Management Plan:
• Identifies who is responsible for managing costs
• Identifies who has the authority to approve changes to the project or its budget
• How cost performance is quantitatively measured and reported upon
• Report formats, frequency and to whom they are presented

The Project Manager will be responsible for managing and reporting on the project’s cost throughout the duration of the project. During the monthly project status meeting, the Project Manager will meet with management to present and review the project’s cost performance for the preceding month. Performance will be measured using earned value. The Project Manager is responsible for accounting for cost deviations and presenting the Project Sponsor with options for getting the project back on budget. The Project Sponsor has the authority to make changes to the projec...

... middle of paper ...


Typically the change control process follows the project change control process. If there are special requirements for the cost change control process, they should be detailed in this section.

The cost change control process will follow the established project change request process. Approvals for project budget/cost changes must be approved by the project sponsor.

The budget for this project is detailed below. Costs for this project are presented in various categories...
Fixed Costs: $xxx,xxx.xx
Material Costs $xxx,xxx.xx
Contractor Costs $xxx,xxx.xx
Total Project Cost $xxx,xxx.xx

Management Reserve $x,xxx.xx

Approved by the Project Sponsor:


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