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Elements and Performance Criteria

Required Skills

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 financialmanagement software to develop and monitor project budgets

Required knowledge

budgeting processes and their relationship to the project life cycle

costmanagement tools and techniques

Evidence Required

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 costmanagement techniques in relation to project budgets

reviewing project costmanagement outcomes

communicating project cost budget to others effectively

knowledge of costmanagement tools and techniques

Context of and specific resources for assessment

Assessment must ensure access to

examples of projectmanagement budgets and related financial documentation

evidence or project records of involvement in costmanagement 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 thirdparty workplace reports of onthejob performance by the candidate

analysis of responses addressing different project costmanagement 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 costmanagement 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

Range Statement

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.