Project management cost management plan example

#Project management cost management plan example how to#

We have put time and effort into creating an exceptional guide on how to create a cost management plan with steps that will help you manage your costs successfully with better control and less chaos! This is why teams tend to create an effective cost management plan document that not includes cost planning for the project budget, but also addresses how costs will be effectively managed to the cost baseline and control costs. This process is one of the most crucial concerns throughout the life cycle of a project! Sound cost management powers you to make optimal use of your current resources, measure financial performance, and ensures a sufficient supply of funds, coming in from the right sources at the right time, to meet each project requirement! Hence, to keep the project on track and achieve its successful completion businesses largely depend on the abilities to adequately monitor, manage, and control costs, also known as the cost management process! They not only impact the projectвЂ™s performance but also hinder the ability to execute future projects.

In fact, according to Harvard Business Review, on average 1 in 6 projects face a cost overrun by 200% and another survey by PMI suggested that only 57% of the projects get finished within their initial budgets! Believe it or not!Д¬ost overruns can occur due to various reasons such as unanticipated change orders, supply chain issues, or unfavorable weather conditions that can create many challenging situations. Today, over-budgeted projects have become the norm for many businesses.

Project management cost management plan example