Who is responsible for cost management plan?
In simple words, a cost management plan is the outline of the project’s estimation, allocation and control of costs for the required resources to complete all project activities. The project’s cost plan configuration is one of the most essential parts of a project’s planning phase, and effectively
serves as a safety net that guarantees that project cost is kept within the limits of the budget. The cost management plan in general terms analyzes how the project costs will be planned, funded and controlled. A cost management plan usually involves several decisive procedures ensuring that the project will be executed within the approved budget and quality standards. What does a Cost Management Plan include?
As a project manager in today’s challenging business landscape it is quite certain that you will come across the question “What is a cost management plan?” several times in your career. On these occasions, you need to be well prepared to respond accurately and specifically to the query. Furthermore, you will need to comprehend the importance of management cost configuration in order to bring the project to a successful completion, even though predicting the coming cost of project activities may not be your strong suit Increase your business agility with Planview AdaptiveWork’s project management software As you will be in charge of managing and reporting on the project’s cost throughout its entire lifecycle, the earlier you develop an approximation of cost and the more farsighted you can be, the better the chances are of successful project delivery. These few words of advice from Denis Waitley could come in very useful when performing cost management planning: “Expect the best, plan for the worst and prepare to be surprised.” What is a cost management plan?A cost management plan is a document that helps you map and control a budget. It enables project managers to estimate their costs, allocate resources to the right areas, and control overall spending. Cost management plans keep all project costs in one place, including direct and indirect costs.
Who is responsible for executing the project plan?The Project Manager develops the project charter and plan with the team and manages the team's performance of project related tasks. The Project Manager also secures acceptance and approval of deliverables from the project sponsor and stakeholders.
What is the role of project cost management?Project cost management is the process of estimating, budgeting and controlling costs throughout the project life cycle, with the objective of keeping expenditures within the approved budget.
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