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.
