Project Cost Management often puts people off. It feels complicated and has the mystical air of mathematical magic and wizardry. But there’s little your project sponsor, your client, or their Finance Director care about more than your budget and how closely you can stick to it.
Project cost over-runs are common. But this is not a cause for a defeatist attitude.
No. Instead, you must act with determination to understand project cost management and implement all the tools at your disposal to control costs and bring in your expenditure on budget.
Project Managers have many responsibilities. And one of the most difficult is Project Estimation: to predict what will happen in the future. Because projects are fraught with uncertainty. One of the most widely used approaches to improving estimation is the PERT Method.
And Project Sponsors dislike uncertainty. So they expect Project Managers to reduce it. So, they want you to manage project risks and estimate uncertain, future outcomes like: