Cost Management
Identify, document, and use processes and procedures to estimate project costs and secure project budget(s). Oversee and control expenditure from project budgets.
Improvement Planning
Practices-Outcomes-Metrics (POM)
Representative POMs are described for Cost Management at each level of maturity.
- 2Basic
- Practice
- Use top-down capital expenditure data, project schedules, and resource usage plans to estimate project costs and budgets.
- Outcome
- Project cost estimate accuracy is improving.
- Metrics
- Initial baseline cost estimates versus actuals and revised estimates.
- Take labour views, material views, resource cost views and so forth.
- 3Intermediate
- Practices
- Budget estimates leverage improved sizing and estimations along with both top-down and bottom-up estimation techniques to provide reasonably accurate project budgets.
- Cash flow management is schedule aware and allows for capital expenditure on a just-in-time basis.
- Outcome
- Project cost control is improving.
- Metrics
- Initial baseline cost estimates versus actuals and revised estimates.
- Take labour views, material views, resource cost views and so forth.
- 4Advanced
- Practice
- Use advanced budget management tools and techniques (and possibly treasury management tools on larger projects) to manage project budgets.
- Outcome
- Project cost control and financial management is performing efficiently.
- Metrics
- Initial baseline cost estimates versus actuals and revised estimates.
- Take labour views, material views, resource cost views and so forth.
- 5Optimized
- Practice
- Sustain a project management competitive advantage in project budget and cost management by leveraging research, business ecosystem wide stakeholder advice and financial expertise.
- Outcome
- Project cost control and financial management is a sustained competitive advantage.
- Metrics
- Initial baseline cost estimates versus actuals and revised estimates.
- Take labour views, material views, resource cost views and so forth.