You obviously want your forecasts to be as accurate as possible to keep costs down. Below are the key benefits of investing in PCM: Stay within (or under) your stated budget The upsides of having a dedicated project cost management plan (and tools to help you take action) can’t be overstated. That means few-to-no opportunities to intervene or understand that your project’s budget is ballooning out of control before it’s too late. That said, you can’t afford to ignore the importance of your cost-controlling measures.įood for thought: a 2020 Wellington report found approximately half of project managers don’t have the ability to track KPIs related to their projects in real-time. Why project cost management matters (and why you can’t afford to wing it)Ĭhances are you’re already doing some form of the process above, right? Doing so requires you to be proactive and likewise understand the ins and outs of your project before digging in.Īnd surprise, surprise - project managers are the ones responsible for cost management for any given agency. The end goal of this process is pretty straightforward: keep costs down without sacrificing your team’s schedule or the quality of your project.
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Review: assessing whether the project was on time/budget (and why or why not). Planning: conducting research to determine resources needed for a project.Įstimation: getting an idea of the cost of the resources above based on project scope.īudgeting: finalizing cost based on resources, billable time, and available funds.Ĭost control: actively keeping the project within budget once it’s in progress. This process not only requires project managers to make thoughtful cost estimations during the planning phase but also identify opportunities to intervene if a project is at risk of overrun or overspending. Project cost management (PCM) is the process of predicting and ultimately controlling the budget of a project from start to finish.
![project budget management plan template project budget management plan template](http://myexceltemplates.com/wp-content/uploads/2014/02/Project-Budget-Template-Excel.jpg)
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