Cost is one of the 9 topic areas of project management knowledge.
Limited financial resources is the one constraint of any project. Costs include the people and equipment who do the work, the materials they use, and all the other events and issues that require money or someone's time in a project.
The project team has to organize the work in oder to to mantain the actions within the budget available.
In project management there are various tools and procedures that help manging costs, like Cost Estimating, Budgeting, Cost and Schedule Control System, Cost Analysis.
Task of the Project Cost Management is to describe and execute all those "processes involved in planning, estimating, budgeting, and controlling costs so that the project can be completed within the approved budget" (comp. PMBOK3, p.157).
Processes, phases and toolEdit
|Project Processes||Project Phase||Key Deliverables|
|Cost Estimating, Cost Budgetting||Detailed Planning or design stage||Example|
|Control and Manage Costs Established in the Project Budget||Project Execution and Control||Example|