Evidence Guide: BSBPMG514A - Manage project cost
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!
BSBPMG514A - Manage project cost
What evidence can you provide to prove your understanding of each of the following citeria?
Determine project costs
Determine resource requirements for individual tasks identified in the work breakdown structure, with input from stakeholders and guidance from others Estimate project costs to enable project budget to be prepared within agreed tolerances Develop a project budget Develop a cost-management plan, within delegated authority, to ensure clarity of understanding and ongoing management of project finances
Determine resource requirements for individual tasks identified in the work breakdown structure, with input from stakeholders and guidance from others
Estimate project costs to enable project budget to be prepared within agreed tolerances
Develop a project budget
Develop a cost-management plan, within delegated authority, to ensure clarity of understanding and ongoing management of project finances
Monitor and control project costs
Implement agreed financial-management processes and procedures to monitor actual expenditure against budget Select and use cost-analysis methods and tools to identify cost variations and evaluate alternative actions Implement and monitor agreed actions to maintain financial objectives Provide accurate and timely financial reports
Implement agreed financial-management processes and procedures to monitor actual expenditure against budget
Select and use cost-analysis methods and tools to identify cost variations and evaluate alternative actions
Implement and monitor agreed actions to maintain financial objectives
Provide accurate and timely financial reports
Complete cost-management processes
Conduct appropriate activities to signify financial completion Review project outcomes using available records to determine the effectiveness of project cost management Review cost-management issues and document improvements
Conduct appropriate activities to signify financial completion
Review project outcomes using available records to determine the effectiveness of project cost management
Review cost-management issues and document improvements
Teacher: ___________________________________ Date: _________
Instructions to Assessors
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.
Required Skills and Knowledge
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.
budgeting processes, tools and techniques
methods and tools for costing and cost analysis.
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:
fees and charges
Others may include:
relevant project authority
subject matter experts
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:
communication and reporting processes
financial authorisations and delegations
organisational chart of accounts links.
Financial completion may include:
allocations and distributions
organisational project accounting procedures
project accounts finalisation
Review may include evaluations of:
agreed major milestones, for example phases and subcontracts
change of key personnel
delivery of major deliverables
finalisation of project and other agreed milestones
Records may include:
budgets, commitment and expenditure
cost-management lessons learned
invoice and payment summaries
lists of potential costs
project and/or organisational files and records
recommended and approved courses of action
reports to relevant stakeholders.