How to Deliver Effective Project Cost Management

Project Cost Management can easily seem both dull and difficult. But whatever your attitude to it, there's nothing your finance director will care about more.
And that means your client, boss, or project sponsor will care about your cost management too. After all, your job title may be Project Manager, but your role is to act as a steward. You're a steward for the project and all of its resources: and that includes money.
So, effective cost management is non-negotiable. It isn't your money. So you need to look after it.
And that means two things:
1. Estimating costs and creating your project budget from them
2. Monitoring and controlling project expenditure to adhere to your budget
The Project Management Institute’s (PMI’s) Project Management Body of Knowledge (the PMBoK) has Project Cost Management as one of its ten Knowledge Areas (or KAs).
In this video, I'll take you through all the key aspects of project cost management:
- What project cost management is
- Your ‘Project Cost Management Plan’
- Establishing your costs - the processes of estimating and budgeting
- The governance considerations for project cost management
- Monitoring and controlling project expenditure
- Tailoring your project cost management process
If you want the accompanying article, Project Cost Management - The Essential Things to Know and Do, you can access it at: onlinepmcourses.com/project-c...
You may also like the video, 'Project Financial Management - 5 Tips for Good Project Cost Control': • Project Financial Mana...
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For basic Management Courses - free training hosted on KZbin, with 2 new management lessons a week, check out our sister channel, Management Courses: / managementcourses
For more of our Project Management videos in themed collections, join our Free Academy of Project Management: onlinepmcourses.com/free-acad...

[@adedayoadeyinka4873]

Your video was recommended by my cost management instructor. Great work, very insightful and concise. Thank you

[@Onlinepmcourses]

You're welcome!

[@Jaguar2121]

Thank you for this video. Most of the time, internal IT projects only considers the cost of contractors, staff, software licenses, HW costs, and vendor services. We do not include office and general admin costs which is actually paid by the organization.

[@Onlinepmcourses]

It depends on the organization. But, I would argue that, unless you are including staff and on-costs in your project budget, then your business case is deficient and any decision-making that stems from it will be flawed.

[@AlusineKamara]

This is perfect it make me learn so much from this videos, especially young people like us who want are taking project Management as our profession but did not get the opportunity to further our carrier in the course.

[@Onlinepmcourses]

Kamaralus - this is exactly why I make these videos. People like you who want to manage projects and also keep learning as you do it are the future of our profession. Good luck with your career - and do check-out my free articles and resources at onlinepmcourses.com

[@carlsnella2350]

Kk

[@milner267]

Wow. This was very interesting! And that stage process from Prince2 methodology is quite intriguing. Thank you for sharing

[@Onlinepmcourses]

My pleasure!

[@arungarg3612]

Very informative ,thank you

[@Onlinepmcourses]

You're welcome.

[@militantessayons]

Thank you.

[@Onlinepmcourses]

You're welcome!

[@sameergupta6306]

Really informative

[@Onlinepmcourses]

Glad you think so!

[@venturer7926]

Is work package considered as deliverables?

[@Onlinepmcourses]

Great question... In the US, where the Work Breakdown Structure (WBS) decomposes Products/Deliverables, yes. A Work Package is a discrete set of deliverables. In the UK, where the WBS decomposes tasks/activities, then a Work Package is a set of tasks/activities (which, of course, lead to the creation of one or more deliverables). For more on the US/UK distinction in how WBS is used, see What is a Work Breakdown Structure - WBS? kzbin.info/www/bejne/l5yyY3-cZst7o68

[@venturer7926]

@@Onlinepmcourses Thanks for your reply Sir. I now get the difference between activity based and deliverable based WBS

[@casamir1]

comment for the algo :)

[@Onlinepmcourses]

Thank you. Reply for the same!

[@aleksandraSwedenVlog]

yes, it hard to Count math

[@Onlinepmcourses]

????

[@neliswamkhwanazi2624]

Hi Sir can you help double check my project cost Management? It's due tomorrow

[@Onlinepmcourses]

Sadly, I am not able to give that kind of individual support.

[@neliswamkhwanazi2624]

@@Onlinepmcourses alright sir

[@neliswamkhwanazi2624]

@@Onlinepmcourses is no one you can refer me to?

[@Onlinepmcourses]

@@neliswamkhwanazi2624 I don't know of anyone who will offer this level of support. If you are a new PM, find a mentor. If you are a student, then take your questions to the teaching staff.

[@DitechGaming]

I just wonder how much you get paid by the "University of Windsor"? Because your content on every single class, i'm sure my classmates love your happy bald face 👨‍🦲

[@Onlinepmcourses]

I don't get paid by University of Windsor - I hope they are showing my videos on the KZbin platform - otherwise they are in breach of copyright!

[@militantessayons]

If you close your eyes he sounds like BBC

[@Onlinepmcourses]

That's a good thing, I think - trusted brand, high production values. I'll take that! Thank you.

[@militantessayons]

@@Onlinepmcourses Yes its a good thing. I feel like I am in Oxford university listening to a famous professor.