Application
This unit describes the 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.
It applies to individuals responsible for managing and leading a project in an organisation, business, or as a consultant.
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Determine project costs | 1.1 Determine resource requirements for individual tasks identified in the work breakdown structure, with input from stakeholders and guidance from others 1.2 Estimate project costs to enable project budget to be prepared within agreed tolerances 1.3 Develop a project budget 1.4 Develop a cost-management plan, within delegated authority, to ensure clarity of understanding and ongoing management of project finances |
2. Monitor and control project costs | 2.1 Implement agreed financial-management processes and procedures to monitor actual expenditure against budget 2.2 Select and use cost-analysis methods and tools to identify cost variations and evaluate alternative actions 2.3 Implement and monitor agreed actions to maintain financial objectives 2.4 Provide accurate and timely financial reports |
3. Complete cost-management processes | 3.1 Conduct appropriate activities to signify financial completion 3.2 Review project outcomes using available records to determine effectiveness of project cost management 3.3 Review cost-management issues and document improvements |
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 1.1, 1.2, 2.2, 3.2, 3.3 | Interprets and analyses textual information from a range of sources Reviews, compares and contrasts information related to budget |
Writing | 1.3, 1.4, 2.4, 3.3 | Drafts and develops documents using appropriate format and language for context |
Oral Communication | 1.1 | Participates in verbal exchanges using clear language and appropriate tone and syntax to provide relevant information Uses active listening and questioning to elicit views and opinions of others |
Numeracy | 1.1-1.4, 2.1, 2.2, 2.4, 3.1, 3.2 | Uses mathematical formulae to calculate resources against predetermined budgets, solve variances and finalise project costs |
Navigate the world of work | 1.4, 2.1 | Adheres to organisational policies and procedures and understands responsibilities of own role |
Interact with others | 1.1 | Selects and uses appropriate conventions and protocols when communicating with internal and external stakeholders to confirm requirements, seek guidance or share information |
Get the work done | 1.1, 1.3, 1.4, 2.2, 2.3, 2.4, 3.2, 3.3 | Plans and schedules complex activities, monitors implementation and manages relevant communication Monitors actions against goals, adjusting plans and resources where necessary Uses analytical skills to review and evaluate process and decide on future improvements Uses digital applications to access, organise, integrate and share relevant information in effective ways |
Sectors
Management and Leadership – Project Management