Project Cost Control is the systematic oversight and management of a project’s expenses. Controlling project costs involves the initiation, planning, and execution phases of the project lifecycle.
Cost Control in Project Initiation
It is critically important to setup the project for success from the beginning. That means selecting and approving projects based on a legitimate business case. During the initiation and planning phases, costs and risks should be thoroughly identified.
Cost Control in Project Planning
During the planning phase, the project’s budget and proper cost breakdown structure are established. This will also include project constraints that affect the timeline and budget. Project cost control KPIs are identified and milestones agreed upon.
During project execution it is crucial that costs are tracked and monitored consistently and as quickly as possible. As expenses accumulate, a system of project insight should be able to monitor and flag any abnormal values. Ideally, project management KPIs should be tracked in real-time.
Who Does Project Cost Control?
Depending on the organization, Project Cost Control activities may be undertaken by a project manager, controller, project management director, or even the CFO. With a system like Project Automation, cost controls are embedded in the system and relevant stakeholders are automatically notified of exceptions.
Learn how Project Automation enables the digital transformation of your project organization.
State of AI in Project Management
With the constant release of new AI tools what is the real situation with AI in project management? We are conducting this survey and creating this report to answer that question.
Hear directly from project business leaders and project management professional to understand how AI is being adopted in project management, what are the most beneficial use cases, what are the results.
