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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

Required Skills

Required skills

analytical skills to evaluate processes and recommend improvements

numeracy and budgeting skills to monitor expenditure and manage project costs

technology skills to use software for recording expenditure and reporting on the project budget and costs

Required knowledge

budgeting processes tools and techniques

methods and tools for costing and cost analysis

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 budgetary processes tools and techniques relevant to the project context

monitoring project costs across the project life for a project of sufficient complexity to demonstrate the full range of performance requirements

preparing a budget for a project

Context of and specific resources for assessment

Assessment must ensure

access to workplace documentation including budgets and other 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 thirdparty workplace reports of onthejob performance by the candidate

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

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

review of developed and implemented costmanagement plan

review of documentation about project outcomes costmanagement issues and identified improvements

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.

Resource requirements may include:	equipment facilities fees and charges human resources materials services statutory costs.
Others may include:	program manager project specialists relevant project authority subject matter experts team members.
Project costs are estimated considering:	contingencies to allow for identified risks and uncertainty degree of accuracy required (tolerance levels) information available at the time organisational requirements, for example overhead and profit margin work breakdown structure.
Delegated authority means that activities will:	be conducted routinely or as changing circumstances dictate be done independently within broad guidance involve consultation with other project members, teams and internal stakeholders involve taking a lead role in a team where required involve the selection, use and supervision of appropriate cost-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 and delegations invoice procedures organisational chart of accounts links.
Financial completion may include:	allocations and distributions final payments financial reports organisational project accounting procedures project accounts finalisation variations statement.
Review may include evaluations of:	agreed major milestones, for example phases and subcontracts change of key personnel contingencies delivery of major deliverables finalisation of project and other agreed milestones variations.
Records may include:	budgets, commitment and expenditure cash flows cost-management lessons learned cost-management plans invoice and payment summaries lists of potential costs project and/or organisational files and records quotations recommended and approved courses of action reports to relevant stakeholders.