Chapter 3: Cost Management. Cost management is the completion of the project management triple constraint of cost, schedule, and scope. Each of these must be completed in order to complete the project on time and on budget and to meet all of the customer’s expectations. In order to meet the cost goals of the project, the project must be completed within the approved budget. C Why We Need Cost Management The project manager is primarily concerned with the direct cost of the project, but the trend in project management is that the role of the project manager in cost control will increase to include more. | CHAPTER 3 Cost Management Cost management is the completion of the project management triple constraint of cost schedule and scope. Each of these must be completed in order to complete the project on time and on budget and to meet all of the customer order tomeet the costgodsof the project theotojeos muitbe completedwithiothe approvedOudeet. Why We Need CooCMapagomonU The project manager is primarily concerned with the direct cost of the project but the trend in project management is that the role of the project manager in cost control will increase to include moreof the nontraditional areas of oott tontrel. In the future it willboexpecced thxt mooe project will hove agrpatOeatoOinpellutothemdireclcects anO evpeotet of the euolunt. RatuKltrssof vitat tOe project manatetis or isnotaespopst0le ferjt it criticatihat the projcut be muesxrud vgoiatt whatcte ptajoet manaoxr is responoiblc fat tnd nothing else. If the project manager does not have responsibility fot tPr moiericl eoct of dte h the projectmimugerro aemoasureUouamti tUtimetric. Témmo ofthecuOpctlonofcost infoemation it .tu imporiont totci cost mreorement oystem. Tht protoa Ougoettmottbetonehroniecdwith the conectionoe tUpp mt l notP Uoroxamplcje a project team is responsible Oosmnteeiatcoot rhouM the ludgotoluw doe expetiditurowhen 77 78 Preparing for the Project Management Professional Certification Exam the commitmentby the project team tobuytheproductismade when the item is delivered when it is accepted or when it is paid for Timing issues like these can make project cost control a nightmare. If the erojeeteom does notproperlycontrolcost the project will invariably go cut of eontrol anf meee moceywflbe spent ohcn tnticipeted. It is theuurppee ea ceetmonagemem toaonvtnt ahio. it Prtnjv t Lite Cycleend PoooectCost Lately it has become important to consider the cost of the project for the full useful life of the product or service that is created. This .
