Cost Management Plan

Christmas party

Title CA Department Store Christmas party

Version v1.0 Date October
20xx

Responsibility of Project Manager Name/Contact Pavan

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Contents
1. Cost Management Plan summary ................................................................................................................... 3
1.1 Reporting requirements .......................................................................................................................... 3
1.2 Degree of estimation required ................................................................................................................ 3
1.3 Project expenditure discretions .............................................................................................................. 3
2. Cost variance action plan ................................................................................................................................ 3
3. Cost accounting ............................................................................................................................................... 3
4. Cost estimation ............................................................................................................................................... 4
5. Cost management reporting ........................................................................................................................... 4
6. Cost processes including change and control ................................................................................................. 4
6.1 Change control log .................................................................................................................................. 4
6.2 Change process ....................................................................................................................................... 4
7. Organisational policies and procedures .......................................................................................................... 5
8. Approval .......................................................................................................................................................... 5

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 1. Cost Management Plan summary
<The Cost Management Plan defines how the costs of a project will be managed throughout the project life
cycle. The plan sets out the strategies to be implemented to control and monitor project costs.
Provides an overview of the cost management process as it applies to the project. The regularity of reporting is
clearly indicated and the percentage of variance required at different stages of this plan.>

1.1 Reporting requirements

Frequency of Cost Monitoring Weekly Frequency of Cost Budget Weekly

1.2 Degree of estimation required

Conception of project 20% Concept
Project Charter 10% Prior to planning
Cost Baseline 5% Before implementation

1.3 Project expenditure discretions

$ Expenditure Limits Project Position
<$10,000 Project manager
$10,001- $20,000 Project Manager and Project Sponsor

$20,001- $30,000 Project Manager and Project Sponsor

2. Cost variance action plan

Outlines the action to be taken if there is a cost variance.

Variance % Action Required Responsibility of

0-5% Report variance with explanation Project Manager
6-20% Commitment to costs can only be given by Project Manager - Project Manager
document accordingly
20-45% Written approval required from project committee - document Project Manager and
accordingly committee
46-95% Re-estimate project WBS and call project team meeting to Project Manager and
discuss. team
95-100% Abandon project – inform stakeholders Project Manager and
Sponsor

3. Cost accounting
<Describe the process for project cost accounting and control accounts.>
Control accounts are to align with WBS summary tasks.

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Expenses for the party to be coded to 4010 Staff amenities

4. Cost estimation
<How cost management is measured and reported on. Define the process to be used for estimating costs for
each of the project’s activities. Classify units of measurement, precision, accuracy, and performance
measurements.>

Estimation method Top down estimation

Measurements
Material costs
Estimation accuracy
Performance measurements
Material cost= quoted costs
Initiation phase = - +/- 45%
Planning phase = +/-10%
Earned Value Management to be reported in each weekly status report

5. Cost management reporting

Project budget to actual reports to be issued monthly. Insert Budget here – see instructions in your
assessment.
Note: Budgets for this assessment are to be created and saved as per instructions in the assessment.

6. Cost processes including change and control

<Describe the cost management processes to be used for the project. These process may include control
process and who has authority to approve changes to the project or the budget - change control processes.>
Change requests must be completed for every project change and recorded in the change request log.

6.1 Change control log

To be used as required for changes – when they occur.
Learners should complete the following changes

Date of
ID Change Description Priority Originator Evaluator Status
Decision

1 Decorations High Pavan Approved 8/12

2 Executive accom. And travel High Shari Amiri Pavan Approved 9/12
3 Hot beverage charge High Joan Brown Pavan Approved 10/12
4 Additional charge wait staff High Lucy Lowinsky Pavan Approved 11/12
5 Nonstandard hours charge High Anja Pavan Approved 12/12

6.2 Change process

Change request process:

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 Undertake
Change is identified Accept OR reject assessment of
Evaluate validity of
and change request change request and accepted change
change request
submitted log decision request for impact
on project

Accept OR reject
Seek approval of Log decision see log
change and log Implement change
accepted change below
decision

Communicate
Update baselines
change

7. Organisational policies and procedures

For the Christmas party we will refer to the following policy and procedures at a minimum:

 Procurement policy
 Reporting requirements
 Accounting structure
 Standard contract provisions
 Legal and insurance policies and procedures.

8. Approval

Prepared by Pavan

Date October 20XX

Approved by Edward Shands

Date December 20XX

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