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f9488a8cf8 Please note that comments in a language other than English and comments off-topic will be removed. Chapter 6 - Managing Project Suppliers Almost all projects will require some external resources, services or products to be able to meet their objective. (PMBOK Guide Fifth Edition) . The obvious need for a project budget stems from making sure there is enough money available to get the project completed as intended. Project cost management includes the processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget. This includes watching to see where actual cost has varied from estimated cost. Please reply to my email address to let us know whether you give BU permission to use a customized version of your Cost Management Plan Template for graduate students to complete as a requirment for completing the course? Thank you, Dr. In this step, you will determine the cost baseline and the funding requirements for the project. Understanding the purpose of each of these phases will help you get a better idea of what project cost management can do.
Leave a comment. Why a structured approach to buying in products and services is essential. One important consideration when planning costs is the method that will be used to finance these costs. After all, if the revenues don't add up to be more than the expenses at the end of the day (or the end of the year), what is the point of being in business in the first place? The ability to control costs and maximize revenues is the name of the game in any for-profit organization. Finishing the project with the desired outcome is only going to be viewed positively if costs are managed and kept within the project's approved budget. Even services that will be needed as part of the work would be included under the umbrella of procurement. If you are able to control project costs successfully, that project will stand a much better chance of being deemed a winner in the end.