Assessor Resource

BSBPMG412A
Apply project cost-management techniques

Assessment tool

Version 1.0
Issue Date: April 2024


This unit applies to a project practitioner working in a project support role.

The individual may be operating in a large or small organisation and applying skills in the context of enterprise projects.

The project practitioner may be part of a project team under the direction of a project manager, or may work as part of a smaller scale self-directed team.

This unit has generic application to a range of industries and organisations and a range of projects, from simple to complex.

In the context of this unit a project is defined as involving:

a practical and comprehensive project plan

a documented communications strategy

a detailed project budget

strategic engagement with stakeholders

a risk, issues and change-management methodology

a quality plan with assurance and control processes

a supportive team-based environment.

The functions performed in project work, where formal project management methodology is not the main focus, are covered by BSBPMG522A Undertake project work.

This unit describes the performance outcomes, skills and knowledge required to assist in producing a project budget, to monitor project expenditure and to contribute to cost finalisation processes.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)

Prerequisites

Not applicable.

Employability Skills

This unit contains employability skills.



Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

applying cost-management techniques in relation to project budgets

reviewing project cost-management outcomes

communicating project cost budget to others effectively

knowledge of cost-management tools and techniques.

Context of and specific resources for assessment

Assessment must ensure access to:

examples of project-management budgets and related financial documentation

evidence or project records of involvement in cost-management processes.

Method of assessment

A range of assessment methods should be used to assess practical skill and knowledge. The following assessment methods are appropriate for this unit:

direct questioning combined with review of portfolios of evidence and third-party workplace reports of on-the-job performance by the candidate

analysis of responses addressing different project cost-management scenarios

oral or written questioning to assess knowledge of strategies for managing project costs

analysis of budgets and costing prepared by the candidate

review of communication to others of estimated costs for tasks and activities for inclusion in project budget

evaluation of reporting on cost-management issues and responses to project or program manager.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

Required skills

financial management skills to develop project budgets, monitor costs and report on cost management

literacy skills to:

communicate cost information to project stakeholders

report on project costs and financial records

numeracy skills to check and interpret project budgets

technology skills to use financial-management software to develop and monitor project budgets.

Required knowledge

budgeting processes and their relationship to the project life cycle

cost-management tools and techniques.

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Cost-estimating methods may include:

allowance for contingency and risk

cost of quality (COQ)

expert opinion

organisational budget and cost-control policy

organisational chart of accounts

parametric estimating

prior project history

reserve analysis

review of organisational records

top-down or bottom-up estimating.

Cost estimates may include:

application and registration fees for intellectual property (IP) and patents

contingencies identified in risk assessment

facilities

fixed costs

labour

material

project-management overheads

services

travel and accommodation

variable costs.

Others may include:

higher project authority

organisation finance controller

project manager

project specialists and other personnel

relevant accounting support personnel

team members.

Project cost methods, techniques and tools may include:

communication with stakeholders

dispute-resolution and modification procedures

implementation of financial control mechanisms

industry standard cost-management software

integration with organisational finance systems

organisational procurement policy

measurement of actual progress against planned milestones

preferred and pre-qualified supplier costs

project accounting methods

recording and reporting of variations.

Implement action may include:

revised budget forecasts

under limited guidance and supervision

variance management

within agreed authorisation and limits

within established organisational framework, procedures and routines.

Project cost records may include:

cost-management lessons learned

cost verification and validation documentation

input to cost-management plans

invoice and payment records

lists of potential costs

project and/or organisation files and records

reports to relevant stakeholders.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Implement cost-estimating methods against duration/effort and resource requirements 
Determine estimated costs for tasks and activities and confirm degree of accuracy with relevant stakeholders 
Communicate cost estimates where required to others to contribute to project budget and cash flow management 
Contribute to developing cost-management strategies and processes, and providing financial authorisation within delegated authority 
Monitor income and expenditure against the project budget baseline at predetermined intervals 
Identify and report variations in the budget using established project cost methods, techniques and tools 
Implement action and report progress to ensure cost objectives remain achievable throughout the project life cycle 
Assist in the finalisation and transfer of financial assets, liabilities and records to relevant parties 
Assist in the review of project outcomes through the use of project cost records to determine the effectiveness of cost-management processes 
Document cost-management lessons learned for application to future projects 

Forms

Assessment Cover Sheet

BSBPMG412A - Apply project cost-management techniques
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

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Assessment Record Sheet

BSBPMG412A - Apply project cost-management techniques

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: