This unit applies to those responsible for managing and leading a project in an organisation, business or as a consultant.
The project manager operates according to assigned authority levels, and is responsible for own performance and the performance of others.
The project manager may undertake the work in the context of an organisational program and/or portfolio of projects.
This unit has generic application for projects in a range of industries, organisations and contexts.
In the context of this unit a project is defined as involving:
a comprehensive, detailed and integrated project management plan
a formal communications plan
a dedicated and project-based budget
formal and planned engagement with a wide range of stakeholders
a documented risk, issues and change-management methodology
a quality plan with assurance and control processes
a project team-based environment.
Not applicable.
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 the effectiveness of project cost management 3.3 Review cost-management issues and document improvements |
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.
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 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 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 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. |
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. |
Management and Leadership – Project Management
This unit contains employability skills.
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.