Managing Cost Changes

The Control Costs process monitors the project budget and manages changes to the cost baseline. It's concerned with monitoring project costs to prevent unauthorized or incorrect costs from being included in the cost baseline. This means you'll also use Control Costs to assure that the project budget isn't exceeded (resulting in cost overruns). If a change is implemented, you'll have to make certain the budget for the changed item stays within acceptable limits. All budget changes should be agreed to and approved by the project sponsor where applicable (the criteria for approvals should be outlined in the change control system documentation). Stakeholders should also be made aware of budget changes.

The following list includes some of the activities you'll be involved in during this process:

■ Monitoring changes to costs or the cost baseline and understanding variances from the baseline

■ Monitoring change requests that affect cost and resolving them in a timely manner

■ Informing stakeholders of approved changes and their costs

■ Assuring the project budget does not exceed acceptable limits by taking action when overruns are imminent

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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