Assessor Resource

BSBPMG504A
Manage project costs

Assessment tool

Version 1.0
Issue Date: April 2024


This unit applies to an individual who is clearly and solely responsible for the management and leadership of a complex project, either as an employee of an organisation or an external consultant.

In the context of this unit a complex project is defined as a project which involves:

the need for a comprehensive and multi-faceted project plan

the need for a formal internal or external communications strategy

a dedicated and diverse project budget

multiple administrative components

multiple operational components

a wide range of stakeholders

a project operations team.

The functions performed by a program manager to manage costs within multiple projects are addressed in BSBPMG604A Direct cost management of a project program.

This unit describes the performance outcomes, skills and knowledge required to identify, analyse and refine project costs to produce a budget, and to use this budget as the principal mechanism to control project cost.

No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.

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

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:

demonstrated evidence of monitoring project costs across the project life cycle for multiple complex projects

knowledge of budgeting processes, tools and techniques.

Context of and specific resources for assessment

Assessment must ensure:

access to workplace documentation including budgets, financial documents

consideration of feedback from project stakeholders on how costs were managed.

Method of assessment

A range of assessment methods should be used to assess practical skill and knowledge. The following examples 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

oral or written questioning to assess knowledge of strategies for managing project costs and their application to different situations.

analysis of responses addressing case studies and scenarios which present project cost management issues and problems

review of developed and implemented cost management plan

review of documentation about project outcomes, cost management issues and identified improvements.

Guidance information for assessment

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

other units from the Diploma of Project Management.

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

numeracy and budgeting skills to monitor expenditure and manage costs

technology skills to use software for recording expenditure and reporting on finances

analytical skills to evaluate processes and recommend improvements.

Required knowledge

budgeting processes, tools and techniques

methods and tools for costing and cost analysis.

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.

Others may include:

relevant project authority

program manager

project specialists or other personnel

team members

Project costs are estimated to a level of accuracy available considering:

availability of information at the time

contingencies to allow for identified risks and uncertainty

organisational requirements, for example overhead and profit margin

stage of the project life cycle

Delegated authority means that activities will:

be conducted routinely or as changing circumstances dictate

be done independently within broad guidance or by taking the lead of a team

involve consultation with other project members, teams and internal stakeholders

involve the selection, use and supervision of appropriate time management methods, tools and techniques

take into account internal organisational change and external environmental change

Financial management processes and procedures may include:

approval processes

communication and reporting processes

financial authorisations/delegations

invoice procedures

Reviewing may include evaluations of:

agreed major milestones, for example phases and sub-contracts

change of key personnel

delivery of major deliverables

finalisation of project and other agreed milestones

Records may include:

budgets, commitment and expenditure

cost management lessons learned

cost management plans

invoice and payment summaries

lists of potential costs

project and/or organisation files and records

recommended and approved courses of action

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
Determine resource requirements for individual tasks, with input from stakeholders and guidance of others 
Estimate project costs to enable budgets to be developed and implement agreed cost management processes 
Develop and implement a cost management plan, within delegated authority, to ensure clarity of understanding and ongoing management of project finances 
Implement agreed financial management processes and procedures to monitor actual expenditure and to control costs 
Select and use cost analysis methods and tools to identify cost variations, evaluate options and recommend actions to a higher project authority 
Implement, monitor and modify agreed actions to maintain financial and overall project objectives throughout the project lifecycle 
Conduct appropriate activities to signify financial completion 
Review project outcomes using available records and information to determine the effectiveness of cost management processes and procedures 
Review cost management issues and identify improvements 

Forms

Assessment Cover Sheet

BSBPMG504A - Manage project costs
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:

Signature:

Date:

Assessment Record Sheet

BSBPMG504A - Manage project costs

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: