Project Cost Management Course

Lesson 1 • Types of Project Costs

Categorises direct, indirect, fixed, variable, and sunk costs with project examples. Accurate classification underpins reliable budgeting and reporting.

Lesson 2 • Cost Management Within the Project Lifecycle

Maps cost management activities to initiation, planning, execution, and closure phases. Shows how early decisions drive the majority of total project cost.

Lesson 3 • Cost Management Plan Essentials

Introduces the cost management plan as the governing document for all cost processes. Covers required components and how the plan aligns with the project management plan.

Lesson 1 • Estimation Techniques and Their Applications

Compares analogous, parametric, bottom-up, and three-point estimation methods. Matching technique to project phase and data availability improves estimate accuracy.

Lesson 2 • Documenting and Validating Cost Estimates

Establishes practices for basis-of-estimate documentation and peer review. Validated estimates reduce rework and build stakeholder confidence.

Lesson 3 • Estimate Accuracy and Confidence Ranges

Explains order-of-magnitude, budget, and definitive estimate classes with typical accuracy ranges. Understanding confidence levels prevents misuse of early estimates.

Lesson 1 • Establishing the Cost Baseline

Formalises the approved time-phased budget as the cost performance baseline. The baseline is the reference against which all variances are measured.

Lesson 2 • Time-Phasing the Budget

Distributes budget across the project schedule to create a spending plan. Time-phasing enables cash flow forecasting and period-by-period performance measurement.

Lesson 3 • Aggregating Estimates Into a Project Budget

Demonstrates rolling up work package estimates through control accounts to the total project budget. Proper aggregation ensures traceability from task to total cost.

Lesson 1 • Quantitative Cost Risk Analysis

Applies Monte Carlo simulation and sensitivity analysis to model cost uncertainty. Quantitative outputs provide probability distributions for project cost outcomes.

Lesson 2 • Risk Response Cost Planning

Budgets the cost of risk response actions including mitigation, transfer, and acceptance. Response costs must be incorporated into the project budget before baseline approval.

Lesson 3 • Cost Risk Identification and Classification

Identifies cost-specific risks including estimation error, scope growth, and market volatility. Classifying risks by source enables targeted mitigation strategies.

Lesson 1 • Setting Up an EVM System

Covers the organisational and data requirements for implementing EVM on a project. A properly structured EVM system produces reliable, actionable performance data.

Lesson 2 • Variance Analysis Using EVM

Calculates cost variance and schedule variance to quantify deviations from the baseline. Variance analysis directs management attention to the most critical performance gaps.

Lesson 3 • Core EVM Concepts and Terminology

Defines planned value, earned value, and actual cost as the three foundational EVM data points. Mastery of these terms is prerequisite to all variance and index calculations.

Lesson 1 • Estimate to Complete and Variance at Completion

Calculates remaining work cost (ETC) and projected final variance (VAC). These metrics quantify the financial gap between current trajectory and the approved budget.

Lesson 2 • Estimate at Completion Methods

Presents four EAC formulas based on different assumptions about future performance. Selecting the appropriate formula depends on the reliability of past performance data.

Lesson 3 • Forecast Reporting and Decision Support

Structures forecast outputs into management reports that drive corrective action. Effective reporting translates numerical forecasts into clear decisions for stakeholders.

Lesson 1 • Integrated Change Control for Cost

Explains how scope, schedule, and cost changes must be evaluated and approved together. Integrated change control prevents unauthorised budget erosion.

Lesson 2 • Cost Control Tools and Techniques

Reviews software, dashboards, and analytical tools that support real-time cost monitoring. Tool selection should match project complexity and organisational reporting requirements.

Lesson 3 • Managing Cost Overruns and Recovery Plans

Provides structured approaches to diagnose overruns and develop credible recovery strategies. Recovery plans must balance cost reduction with scope and quality preservation.

Lesson 1 • Benchmarking and Continuous Improvement

Compares project cost performance against industry benchmarks to identify improvement opportunities. Continuous improvement cycles raise the organisation's cost management maturity.

Lesson 2 • Executive Cost Reporting and Dashboards

Designs concise, visually effective cost reports tailored to executive decision-making needs. Reports must highlight trends, risks, and decisions required rather than raw data.

Lesson 3 • Value Engineering and Cost Reduction

Uses value engineering to eliminate unnecessary cost without reducing required function or quality. Structured VE workshops generate savings while maintaining stakeholder-approved scope.

Lesson 4 • Lessons Learned and Cost Knowledge Management

Captures cost performance data and estimation lessons to improve future project accuracy. Systematic knowledge management converts project experience into organisational capability.