Cost Management Plan Template
Use this fourteen-page Cost Management Plan template to plan cost management, estimate costs, determine budget, and define the procedures to control costs. It supports development of an effective subsidiary management plan.
This Cost Management Plan template is used to draft a subsidiary plan which is part of the Project Management Plan. It establishes processes for estimating project costs, determining the project budget, and controlling costs throughout the project life cycle.
As a well-considered template, it is developed in alignment with generally recognized good practices in project management. Specifically, this template:
- begins with a section that captures relevant project information;
- provides for the identification of project roles and responsibilities, as they pertain to project cost management;
- prompts the Project Manager to plan cost management by identifying: pre-approved financial resources, schedule processes or controls that impact cost, risks that may impact cost estimation or cost management, and financial controls procedures that may impact cost management;
- specifies units of measurement, defines the levels of precision and accuracy, and identifies similar past projects from which to review historical cost information;
- specifies tools and techniques for estimating costs;
- identifies market conditions and exchange rates;
- provides sections to develop strategies to account for impacts to cost;
- includes a section for estimating costs by work packages, then aggregating them by cost categories;
- provides a placeholder for including the basis of cost estimates and one for determining the overall project budget, inclusive of a contingency reserve and a management reserve;
- provides a section to indicate the level of confidence in the project budget and offers a placeholder for the cost baseline;
- identifies funding limits, date constraints, and funding requirements while specifying the source of funding;
- includes a cost control section that defines the control account, establishes control thresholds, establishes rules of performance measurement, specifies what work performance information will be captures, and specifies the process for controlling change;
- includes places for noting assumptions, issues, and risks that are identified while planning cost management;
- It includes a section for attaching relevant project documents for approval, like the cost breakdown structure; and
- provides a section for cost management plan approval.
Who Creates the Cost Management Plan?
Typically, the Project Manager develops the Cost Management Plan which accounts for the input of various project team members, other stakeholders, and the project sponsor.
What Are the Inputs?
There are numerous inputs to the development of a Cost Management Plan, including the project charter, the schedule management plan, the risk management plan, market conditions, currency exchange rates, historical information, financial databases, and more.
How Should the Cost Management Plan be Tailored?
The Cost Management Plan varies greatly, depending on project needs. For some projects, the Cost Management Plan is developed in detail and becomes formally approved before the start of project work. For other projects, this highly detailed and rigid approach to project planning would be disastrous. In these situations, the Cost Management Plan is often developed more loosely and from a high-level perspective. As the project progresses, the Cost Management Plan may become more elaborate. It is the Project Manager’s responsibility to consider all relevant factors that may affect the project and tailor the template accordingly.
Make Work Easier
We know this template will make your work easier. Want an even a better solution? Consider getting The Practitioner’s Book of Project Management Templates. Our e-book contains a complete set of editable, project management templates. It expedites development of project management plans and supports project managers throughout the project life cycle. By the way, it includes this Cost Management Plan template.