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Cost Management Plan – Project PASS PMP
Folder: /30-cost-management/
Bloom’s Level: 2 – Understanding (Describe, Apply, Interpret)
1. Purpose
This plan defines how costs will be:
- Estimated
- Budgeted
- Baseline-locked
- Controlled
- Reported
It ensures financial discipline, supports budget approval, and defines cost control processes throughout the project lifecycle.
2. Cost Estimation Approach
Cost estimates will be based on:
- Bottom-up estimation of tasks in the Detailed Schedule
- Historical benchmarks from past study builds
- Expert judgment from sponsor and content creators
Cost estimates are documented in the Cost Estimates file.
3. Budgeting and Baseline
Once estimates are complete, they are aggregated and phased into the Cost Baseline.
This baseline is:
- Time-phased
- Approved by the sponsor
- Locked unless a formal Change Request is submitted
4. Funding Requirements
Funding needs are documented in Funding Requirements.
This includes:
- Contributor hours and stipends
- Tech stack or hosting costs
- Estimated cost buffers for delays or rework
5. Roles and Responsibilities
| Role | Responsibility |
|---|---|
| Sponsor | Approves cost baseline and funding gates |
| Project Manager | Maintains cost baseline, tracks variance |
| Contributors | Log time spent, provide effort estimates |
| Finance Reviewer (optional) | Validates major changes |
6. Cost Control and Variance Management
Cost performance is measured using:
- Cost Variance (CV) = EV − AC
- Cost Performance Index (CPI) = EV ÷ AC
Variances greater than ±10% must be escalated and logged via the Change Request Template.
7. Assumptions and Constraints
Assumptions
- No paid contractors involved unless sponsor-approved
- Sponsor’s time is considered “no-cost” but tracked for realism
- All contributors are part-time and self-paced
Constraints
- Total hours capped at [insert value]
- No third-party integrations or licensing beyond current toolset
8. Cost Reporting
Updates are included in the Schedule Performance Report, with summaries of:
- CPI trends
- Burn rate (effort vs. timeline)
- Budget-at-completion
9. Approval
| Name | Role | Signature | Date |
|---|---|---|---|
| Sponsor | Budget Authority | ||
| PM | Cost Owner |
📌 This plan governs all cost-related activities in Project PASS PMP. No cost changes or increases to the baseline may be made without formal change control.