Working with Costs and Budgeting

Cost estimating Top-down cost estimating is the practice of using the actual cost of a previous similar project as the basis for estimating the cost of the current project. Bottom-up cost estimating involves estimating the cost of individual tasks and then summarizing those estimates to arrive at a project cost total. The estimate should take into consideration labor, materials, supplies, and any other costs. With Microsoft Project, you can see the planned costs of resources, as well as the fixed costs associated with tasks. Microsoft Project can total all costs to give you a reliable estimate of how much it will cost to implement the project. Cost budgeting The budget can allocate certain amounts to individual phases or tasks in the project. Or the budget can be allocated to certain time periods in which the costs will be incurred. The cost estimate and the project schedule—with the scheduled start and finish dates of the different phases, tasks, milestones, and deliverables—are instrumental to developing the project budget.

Cost control This process controls changes to the project budget. Cost control addresses the manner in which cost variances will be tracked and managed, and how cost information will be reported. A cost management plan can detail cost control procedures and corrective actions.

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.

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