OVERVIEW

Project Cost Management includes the processes involved in planning, estimating, budgeting, and controlling costs so the project can be completed within the approved budget. These processes interact with each other and with other processes in the other knowledge areas as well. Each process can involve effort from one or more persons or groups based upon the needs of the project.

Project Cost Management PMBOK area of knowledge includes the following processes and deliverables:

1. Cost Estimating

   1. Activity Cost Estimates

   2. Activity Cost Supporting Detail

   3. Requested Changes

   4. Cost Management Plan (Updates)

2. Cost Budgeting

   1. Cost Baseline

   2. Project Funding Requirements

   3. Project Management Plan (Updates)

   4. Requested Changes

3. Cost Control

   1. Cost Updates (Estimates)

   2. Cost Baseline (Updates)

   3. Performance Measurements

   4. Forecasted Completion

   5. Requested Changes

   6. Recommended Corrective Actions

   7. Organizational Process Assets (Updates)

   8. Project Management Plan (Updates)

These discrete process components integrate with each other and with other processes from other areas of knowledge within the PMBOK . In addition, these process components may impact other successor dependent program and/or project initiatives in a manner not visible to the project team.

In the 3Ms metric key value area models that follow in this chapter, each metric model contains rules that require acceptance from the receiving user. This ensures that visibility to the deliverable is confirmed by the primary receiving user and other project-related stakeholders. Another benefit of this approach is project fraud prevention and detection. By ensuring that visibility to the specific deliverable is confirmed, opportunity for project fraud is reduced, thereby improving project fraud prevention. This...