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Cost Management

A8

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.