The Cost Management Plan is a PMBOK document which sets out how the project costs will be estimated, tracked, monitored, reported and controlled. It forms part of the Project Management Plan and supplies information to the Activity Cost Estimates, Cost Baseline and risk register. stakeholdermap.com
In the PMBOK sixth edition the Cost Management Plan is is created in the process 7.1 Plan Cost Management.
This template includes all of the areas you need to cover, with includes useful hints and tips to help you complete each section.
This is a FREE Cost Management Plan Template in Word and PDF. The template is fully editable with Microsoft Word and can be converted or changed to suit your project.
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Indicate how each type of resource will be measured. For example, labor units may be measured in staff hours, days, or weeks. Physical resources may be measured in gallons, meters, tons, or whatever is appropriate for the material. Some resources are based on a lump sum cost each time they are used.
Describe how the cost estimating, tracking, and reporting will align with the project Work Breakdown Structure, requirements traceability matrix, along with the organization’s cost codes, and account procedures. For example,
The project costs will be tracked in the Project Management Cost Tracking software which links directly to the project team timesheets. The costs will be broken down by work package with the following fields captured for each element.
Customer > Project >
Unique Key > Work Package name > WBS ID > Cost Code >
Document the project tolerances. These are the points at which action will need to be taken to correct a variance from the budget. For example
Put simply describe how costs will be tracked against the budget. For example, what level of the WBS will be used to record costs and how progress against budget will be measured. If Earned Value Management is being used describe or link to the method your organization uses.
Describe how costs will be reported and when. For example,
Costs will be recorded daily in Monday.
Dashboards will be used for project team reporting:
Costs will be exported from Monday and reported weekly to the Customer and Project Board on the Project Status Report.
Any variances over project tolerance will be reported to the PMO as well as to the relevant approver.
