#Cost management plan example code

Indicate the reporting frequency.ĭescribe variables associated with strategic funding choices, such as make or buy, buy or lease, borrowing funds versus using in-house funding, etc.The COMPANY Cost Management plan details the processes for managing project financial resources that are to be followed through all stages of the project. If a spe- cific reporting format will be used, attach a copy or refer to the specific form or tem- plate. Document the equations that will be used to forecast estimates to complete (ETC) and estimates at completion (EAC).ĭocument the cost information required for status and progress reporting. Describe the measurement method that will be used, such as weighted milestones, fixed-formula, percent complete, etc. For projects that use earned value management indicate whether costs will be reported at the work package or control account level. Identify the level in the WBS where progress and expenditures will be measured. Usually indicated as a percent deviation from the baseline. Indicate the measures that determine whether an activity, work package, or the project as a whole is on budget, requires preventive action, or is over budget and requires corrective action.

#Cost management plan example code

It may also need to follow the organization’s code of accounts or other accounting and reporting structures. If there are guidelines for rolling wave planning and the level of refinement that will be used for cost estimates, indicate the levels of accuracy required as time progresses.Ĭost estimating and reporting should follow the numbering structure of the WBS. The level of accuracy may evolve over time as more information is known (progressive elaboration).

Indicate whether cost estimates will be rounded to hundreds, thousands, or some other measurement.ĭescribe the level of accuracy needed for estimates. Some resources are based on a lump sum cost each time they are used. Physical resources may be measured in gallons, meters, tons, or whatever is appropriate for the material. For example, labor units may be measured in staff hours, days, or weeks. Indicate how each type of resource will be measured. The cost management plan should be aligned and consistent with the following documents: For projects that use earned value management, include information on rules for establishing percent complete, the EVM measurement techniques (fixed formula, percent complete, level or effort, ).Units of measure for each type of resource may be indicated in the cost management plan or the resource management plan.

In those cases you would not need this form. On smaller projects, often the project manager does not manage the budget.It is developed once and does not usually change.Ĭonsider the following tips to help tailor the cost management plan to meet your needs: The cost management plan is an output from the process 7.1 Plan Cost Management in the PMBOK® Guide – Sixth Edition. The cost management plan can receive information from the: In addition, the cost management plan may include information on the level of authority associated with cost and budget allocation and commitment, funding limitations, and options and guidelines on how and when costs get recorded for the project. Process for monitoring and controlling costs.Process for developing a time-phased budget.The cost management plan can include the following information: It specifies how the project costs will be estimated, structured, monitored, and controlled. The cost management plan is a part of the project management plan.