With its processes, the required budget of the project can be determined and then the project costs … Project management is a distinct area of management that helps in handling projects. •Processes associated with cost management include: Estimate Costs Determine Budget Control Costs •Processes and related tools and techniques are usually selected when defining the project life cycle and are documented in cost management plan. 1.2 Documentation and Communication Practices Discuss how progress and changes will be documented and how information will be communicated with team members and stakeholders. Project Cost Management Learning Objectives After reading this chapter, you will be able to: Develop a justification for project cost management and its importance in achieving project success Explain basic project cost management principles, concepts, and terms Describe the process of planning cost management Discuss different types of cost estimates and … 1 Introduction to the Challenge of Cost and Value Management in Projects 1 1.1 Importance of Cost and Value Management in Projects 2 1.2 Keys to Effective Project Cost Management 6 1.3 Essential Features of Project Value Management 8 1.4 Organization of the Book 9 References 14 2 Project Needs Assessment, Concept Development, and Planning 17 Chapter 7. Overview Determine Budget (Planning) 1. •To determine whether the project is worth doing. Why Estimating Time and Cost Are Important EXHIBIT 5.1 •To support good decisions. The Cost Management Plan: It has three key features to distinguish it from other forms of management and they include: a project manager, the project team and the project management system. Project Management for Construction_Cost Estimation - Free download as PDF File (.pdf), Text File (.txt) or read online for free. The Basics of Project Cost Management - Project Management Training The Basics of Project Cost Management - Project Management Training von Project Management Videos vor 3 Jahren 5 Minuten, 40 Sekunden 160.694 Aufrufe ... you need a , cost management , plan. •To determine how well the project is progressing. The project management system comprises organization structure, information processing and decision- Please refer to PMBOK® Guide Fourth Edition, page 167, figure 7-1. It includes processes required to complete the project within the approved budget and reflect the project organization’s strategic goals, mission statement and business plan. Project Cost Management plan overview 1.1 Purpose Identify the desired outcome and how the plan will be beneficial. The Cost Management Plan clearly defines how the costs on a project will be managed throughout the project’s lifecycle. •To determine how long the project should take and its cost. In this PMP study material pdf , we’ll cover all the processes in the Cost Management Knowledge Area in PMBOK Guide 6th Edition PDF . 2. •To schedule work. •To develop cash flow needs. Project cost management Project cost management plays very important role for running successful projects. Control Costs (Monitoring & Controlling) 2. Cost Management Processes In a competitive budgetary environment, formal cost management is a crucial project management skill 26 3. Estimate Costs (Planning) Three interactive processes are required to manage costs effectively: Project cost management is the process of bringing as much predictability and control as possible to the expenses of a project. Cost Estimation Cost management should occur early in project planning in order to establish a framework for all cost management processes and ensure that the project does not go over budget. Surprise expenses are the enemy of any organization, so being able to accurately forecast the costs of a project ahead of time is a key skill to possess. It sets the format and standards by which the project costs are measured, reported and controlled.