Cost Management

Project cost management includes the processes required to ensure that the project is completed within an approved budget. Project managers are in a tough spot--they are the liaison between the customer and the project team that will complete the customer's project.

Project managers and their stakeholders need to go into any project with a common goal--identify an affordable scope and a plan of how to achieve it. Too often, cost is ignored in project planning. For projects to be successful, cost management is a very crucial aspect.

Project managers must make sure their projects are well defined, have accurate time and cost estimates, and have a realistic budget that they are involved in approving.

Regardless of scope or schedule, projects need funds to complete the work. Technically, even projects that use only labor has funds attached to them, as someone, somewhere are paying for that labor.

What happens if the correct amount of funds to complete the project scope is not available? The project is doomed.

An excerpt from Project Management Essentials by Deepak Pandey.

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