The project management knowledge area of cost management is concerned with estimating, budgeting, and controlling the budget to stay within the approved expenditures for a project. While it may appear simple, identifying all project costs is perhaps the most challenging task for a project manager and team. In addition to the basic costs of resources, additional charges may stem from economic conditions, equipment operating expenses, loan and bond repayments, and various other expenses. Plus, project practitioners must be flexible to meet all organizational policies and norms.

In this book, we cover all matters related to project cost and financing, including:

• Global principles and best practices
• Project cost evaluation and initiation
• Cost estimation methods and budgets
• Project financial structures and funding
• Project payment terms and cash flow
• Project cost control tools and techniques
• Project financial closure

We’ve made every effort to keep concepts clear for aspiring, new, and accidental project managers while covering project financial topics relevant to all project managers.

Each chapter ends with “Knowledge Nuggets” – tips and basic project management templates. Templates include:

• Project Business Case
• Cost-Benefit Analysis
• Project Cost Management Plan
• PERT Estimation
• Depreciation Calculation
• Budget Presentation
• Budget Control Chart
• Cash Flow