It serves as a benchmark against which actual costs are compared, allowing project managers to monitor and manage the project's financial performance. The cost baseline provides a reference point for tracking and controlling project costs throughout its execution. It is usually presented as a time-phased budget, indicating the planned expenditure for each period. Establish the cost baseline: The final step involves establishing the cost baseline, which is the approved budget for the project.This helps to provide a realistic buffer in the cost baseline. Account for uncertainties: Contingencies are included in the cost estimate to account for unforeseen events or risks that may affect the project's overall cost. ![]() This provides an estimate of the total project cost. Develop the cost estimate: The cost estimate is developed by summing up the costs of all the work packages. ![]() This includes determining the labor cost per hour, the cost of materials, and any other direct costs related to the activities.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |