Project Cost Management and Control

Financial Management and Accounting October 25, 2025
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Introduction

This practical course provides comprehensive training in project cost management and control techniques essential for successful project delivery. Participants will learn cost estimation methods, budget development, cost control processes, and variance analysis specific to project environments. The program covers both traditional and agile project management contexts, addressing how to prevent cost overruns and ensure projects deliver value within approved budgets. Through hands-on exercises and real-world scenarios, attendees will develop the skills to manage project finances effectively from initiation through closure.

Objectives

Key learning objectives for this course include:

  • Develop accurate project cost estimates using multiple techniques
  • Create comprehensive project budgets and baselines
  • Implement effective cost control and monitoring systems
  • Manage project cash flow and funding requirements
  • Conduct variance analysis and corrective action planning
  • Apply earned value management principles and techniques
  • Manage project changes and their financial impacts
  • Develop project cost reporting and communication
  • Close projects and capture cost lessons learned

Target Audience

  • Project Managers
  • Project Controllers
  • Cost Engineers
  • Construction Managers
  • IT Project Managers
  • Engineering Managers
  • Program Managers
  • Financial Analysts in project teams

Methodology

  • Cost estimation workshops
  • Earned value management exercises
  • Case studies of project cost overruns
  • Variance analysis simulations
  • Change management role-plays
  • Budget development projects
  • Peer review of cost plans

Personal Impact

  • Enhanced project cost management skills
  • Improved estimation and budgeting accuracy
  • Stronger analytical and problem-solving abilities
  • Increased confidence in financial control
  • Better communication and stakeholder management
  • Professional growth in project management

Organizational Impact

  • Reduced project cost overruns and variances
  • Improved project profitability and ROI
  • Better resource utilization and efficiency
  • Enhanced decision-making and financial control
  • Stronger project delivery capability
  • Increased stakeholder satisfaction

Course Outline

Project Cost Management Fundamentals

Cost Concepts
  • Project cost management principles
  • Cost types and classifications
  • Lifecycle costing approaches
  • Project financial governance
Planning Framework
  • Cost management plan development
  • Stakeholder financial expectations
  • Resource planning and allocation
  • Risk assessment and contingency planning

Cost Estimation

Estimation Techniques
  • Analogous estimating methods
  • Parametric modeling approaches
  • Bottom-up estimating processes
  • Three-point estimation and PERT
Estimation Development
  • Direct cost estimation
  • Indirect cost allocation
  • Contingency reserve calculation
  • Management reserve determination

Budget Development

Budget Creation
  • Cost baseline development
  • Funding requirements planning
  • Cash flow forecasting
  • Resource rate determination
Budget Approval
  • Stakeholder review processes
  • Management approval procedures
  • Baseline establishment
  • Change control framework

Cost Control

Monitoring Systems
  • Cost tracking methodologies
  • Performance measurement techniques
  • Variance analysis processes
  • Trend analysis and forecasting
Earned Value Management
  • EVM concepts and calculations
  • Performance indices interpretation
  • Forecasting final costs
  • EVM reporting and analysis

Change Management

Change Control
  • Change request evaluation
  • Impact assessment techniques
  • Approval workflow management
  • Baseline maintenance
Corrective Actions
  • Root cause analysis
  • Recovery plan development
  • Resource reallocation
  • Schedule-cost trade-off analysis

Reporting and Communication

Reporting Framework
  • Stakeholder reporting requirements
  • Dashboard development
  • Executive summary preparation
  • Status meeting management
Communication Strategies
  • Bad news communication techniques
  • Stakeholder expectation management
  • Escalation procedures
  • Team financial awareness

Project Closure

Financial Closure
  • Final cost reconciliation
  • Vendor payment completion
  • Resource release and accounting
  • Budget closeout procedures
Lessons Learned
  • Cost performance analysis
  • Estimation accuracy assessment
  • Process improvement identification
  • Knowledge transfer documentation

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