budget - Part 2

Your Guide to Project Management Best Practices

Tagged: budget

Cost Projection Statement and Analysis

PM Framework

Cost Projection Statement and Analysis

Stating cost projection is an activity carried out during the project initiation phase to identify costs for development, implementation and maintenance of the project. The analysis of costs is a tool of project cost planning and management to identify, estimate and describe total cost of project management initiative. Cost projection statement and analysis are required activities that allow making the project estimated and well-grounded in financial terms. Among other tools, cost projection estimates and spreadsheets are used to develop the project charter. They are developed with help of project costing software.

Project Cost Management – Definition, Process and Software

PM Tips & Ideas

How to Estimate Project Costs and Prevent Overspending

What is project cost management? It is a suit of activities for estimating, allocating, and controlling costs within the project. Project cost management allows determining and approving budget for the project and controlling spending. For example, in construction project cost management it is vital to estimate cost of building materials, equipment, salary of workers. In IT project cost management it is critical to estimate cost of software development, salary of IT staff and developers. Effective project cost management allows each project to be specific and unique because that project entails costs and requires specific funding. However, no matter whether you lead a software development project (IT project cost management) or construction project (construction project cost management), you should consider project cost management as a process that consists of the three key steps.