Project Cost Control

Project Cost Control

Project Cost Control

What is project cost control?

Project cost control entails

(a) Influencing the factors that create changes to the cost baseline

(b) Ensuring requested changes are agreed upon

(c) Managing the actual changes when and as they occur

(d) Assuring that the potential cost overrun do not exceed the authorized funding periodically and in total for the project

(e) Monitoring cost performance to detect and understand variances from the cost baseline

(f) Recording all appropriate changes accurately against the cost baseline

(g) Preventing incorrect, inappropriate, or unapproved changes from being included in the reported cost or resource usage

(h) Informing appropriate stakeholders of approved changes

(i) Acting to bring expected cost over runs within acceptable limits

Cost Control Techniques

Following are some of the important cost control tools and techniques

(a) Cost change control system

(b) Performance measurement analysis

(c) Forecasting

(d) Project Performance Reviews

          (i) Variance Analysis
          (ii) Trend Analysis

          (iii) Earned Value Techniques

(e) Project Management Software

(f) Variance Management

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