Cost Performance Baseline

The cost performance baseline is an authorized time-phased budget used to measure, monitor, and control overall cost performance on the project. It is developed as a summation of the approved budgets by time period and is typically displayed in the form of an S-curve, as is illustrated in Figure 7-3.

Funding Requirements

Pmi Cost Baseline

Time

Funding Requirements

Time

The difference between the maximum funding and the end of the cost baseline is Management Reserve.

Figure 7-3. Cash Flow, Cost Baseline, and Funding Display .2 Project Funding Requirements

Total funding requirements and periodic funding requirements (e.g., annual or quarterly) arc derived from the cost baseline. Funding usually occurs in incremental amounts that arc not continuous, and, therefore, appears as a step function as shown in Figure 7-3. The total funds required arc those included in the cost baseline plus the management contingency reserve amount. Some portion of the management contingency reserve may be included incrementally in each funding step or funded when needed, depending upon the organizational policies.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

Get My Free Ebook


Responses

  • august ollila
    Which process do cost performance baseline and project funding requirement belong to?
    1 year ago
  • primula noakes
    Which process do “Cost Performance Baseline” and “Project Funding Requirements” belong to?
    1 year ago
  • HELJ
    What does cost performance baseline. belong to in project management?
    1 year ago
  • gioele dellucci
    How to create cost baseline?
    3 months ago
  • Maryam
    Which process do cost perfomance baseline and project funding requirments belong to?
    4 days ago

Post a comment