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Project Cost Management
Our Project experts can help you with
Cost Estimation
Cost estimating is the process of assembling and predicting costs of a project over its life cycle. It encompasses the three phases included in the initial function chart; namely, economic evaluation, project investment cost and cost forecasting. The economic evaluation is the initial planning phase to determine whether a project is economically and technically feasible and whether sufficient funding can be obtained to implement the project.
Cost Budgeting
The cost budgeting process is one of establishing budgets, standards and a monitoring system by which the investment cost of the project can be measured and managed. Once the project starts, the project budget is a baseline that’s used to compare actual costs vs. estimated costs. Therefore, project budgets allow project managers to quickly understand if their costs are too high and if there’s a risk of cost overrun.
Cost Control
Although the control functions appears in all of the Project Management function charts, the activities associated with each are not universal and hence the term Cost Control is used to differentiate from the other functions. The process of cost control is the gathering, accumulating, analyzing, monitoring, reporting and managing the costs on an ongoing basis.
Resource Planning
Resource planning is the process of forecasting resource requirements for a business, project or scope of work. To create a resource plan, you need to start by defining the project scope, a document that details the project activities that will be done. Once the project activities have been defined, project managers usually rely on historical data, expert opinions, and resource planning tools such as a resource breakdown structure (RBS) to estimate the resources that will be needed.
With our cost solutions, maintain effective financial control of projects every step of the way
Our Cost Analysis
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Minimizes financial risk - Project cost analysis shows if there's a possibility of the project exceeding the budget and having low profitability.
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Helps determine project feasibility - Using project cost analysis shows if a project is feasible according to your budget and the project's profitability.
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Helps prioritize projects - If you do a project cost analysis for several projects, you can determine which projects to pursue based on which projects show the highest profitability and lowest financial risk.
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Get support from stakeholders - If a project cost analysis shows that a project is feasible and profitable, it may help you to earn support from stakeholders.
Our Best Practices
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Plan for cost thresholds - Planning cost threshold beforehand reduces the need for last-minute evaluations and overspending.
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Allocating cost control rules - Ensure that the project budget has continuous oversight.
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Under promise and over deliver on scope - This will put you ahead of the budgeting game and you’ll have some leeway in the project expenses.
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Managing scope creep and change orders - We advocate setting up the correct project financial structures upfront and have a firm decision hierarchy established.
Life cycle costing
We assist with the maintenance of physical asset cost records over entire asset lives. This means decisions around the acquisition, use or disposal of assets can be made in a way that achieves the optimum asset usage at the lowest possible cost to the entity.
