Control Costs is part of the “Cost Management” Knowledge Area, and is part of the “Monitoring and Controlling” Process Group.
Control Costs is the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline. The key benefit of this process is that it provides the means to recognize variance from the plan in order to take corrective action and minimize risk.
Updating the budget requires knowledge of the actual costs spent to date. Any increase to the authorized budget can only be approved through the Perform Integrated Change Control process (Section 4.5). Monitoring the expenditure of funds without regard to the value of work being accomplished for such expenditures has little value to the project, other than to allow the project team to stay within the authorized funding. Much of the effort of cost control involves analyzing the relationship between the consumption of project funds to the physical work being accomplished for such expenditures. The key to effective cost control is the management of the approved cost baseline and the changes to that baseline.
Project cost control includes:
? Influencing the factors that create changes to the authorized cost baseline;
? Ensuring that all change requests are acted on in a timely manner;
? Managing the actual changes when and as they occur;
? Ensuring that cost expenditures do not exceed the authorized funding by period, by WBS component, by
activity, and in total for the project;
? Monitoring cost performance to isolate and understand variances from the approved cost baseline;
? Monitoring work performance against funds expended;
? Preventing unapproved changes from being included in the reported cost or resource usage;
? Informing appropriate stakeholders of all approved changes and associated cost; and ? Bringing expected cost overruns within acceptable limits.
This definition was found in the PMBOK V5
Go back to the Glossary or to the Mapping
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Control Costs has:
Inputs:
- Organizational Process Assets
- Project funding requirements
- Project Management Plan
- Work performance data
Outputs:
- Change requests
- Cost forecasts
- Organizational Process Assets updates
- Project documents updates
- Project Management Plan updates
- Work performance information
Tools and techniques:
- Earned Value Management
- Forecasting
- Performance reviews
- Project management software
- Reserve analysis
- To-Complete performance index (TCPI)
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