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Evidence Guide: BSBPMG412A - Apply project cost-management techniques

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

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BSBPMG412A - Apply project cost-management techniques

What evidence can you provide to prove your understanding of each of the following citeria?

Assist in developing the project budget

  1. Implement cost-estimating methods against duration/effort and resource requirements
  2. Determine estimated costs for tasks and activities and confirm degree of accuracy with relevant stakeholders
  3. Communicate cost estimates where required to others to contribute to project budget and cash flow management
  4. Contribute to developing cost-management strategies and processes, and providing financial authorisation within delegated authority
Implement cost-estimating methods against duration/effort and resource requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine estimated costs for tasks and activities and confirm degree of accuracy with relevant stakeholders

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Communicate cost estimates where required to others to contribute to project budget and cash flow management

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Contribute to developing cost-management strategies and processes, and providing financial authorisation within delegated authority

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor project costs

  1. Monitor income and expenditure against the project budget baseline at predetermined intervals
  2. Identify and report variations in the budget using established project cost methods, techniques and tools
  3. Implement action and report progress to ensure cost objectives remain achievable throughout the project life cycle
Monitor income and expenditure against the project budget baseline at predetermined intervals

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and report variations in the budget using established project cost methods, techniques and tools

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Implement action and report progress to ensure cost objectives remain achievable throughout the project life cycle

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Contribute to cost-finalisation process

  1. Assist in the finalisation and transfer of financial assets, liabilities and records to relevant parties
  2. Assist in the review of project outcomes through the use of project cost records to determine the effectiveness of cost-management processes
  3. Document cost-management lessons learned for application to future projects
Assist in the finalisation and transfer of financial assets, liabilities and records to relevant parties

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assist in the review of project outcomes through the use of project cost records to determine the effectiveness of cost-management processes

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Document cost-management lessons learned for application to future projects

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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 cost-management techniques in relation to project budgets

reviewing project cost-management outcomes

communicating project cost budget to others effectively

knowledge of cost-management tools and techniques.

Context of and specific resources for assessment

Assessment must ensure access to:

examples of project-management budgets and related financial documentation

evidence or project records of involvement in cost-management 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 third-party workplace reports of on-the-job performance by the candidate

analysis of responses addressing different project cost-management 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 cost-management 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.

Required Skills and Knowledge

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 financial-management software to develop and monitor project budgets.

Required knowledge

budgeting processes and their relationship to the project life cycle

cost-management tools and techniques.

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.