BSBPMG423
Apply project cost management techniques


Application

This unit describes the skills and knowledge required to assist in producing a project budget, to monitor project expenditure and contribute to cost finalisation processes.

The unit applies to individuals who are project practitioners working in a project support role.

No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication.


Elements and Performance Criteria

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Assist in developing project budget

1.1 Identify project objectives, duration, deliverables and resource requirements

1.2 Apply cost-estimating methods and calculate costs of project resource requirements

1.3 Identify estimated costs for tasks and activities

1.4 Communicate cost estimates to relevant staff and confirm accuracy and obtain input for project budget and cash flow management

1.5 Contribute to finalisation of project budget and costs

1.6 Contribute to developing cost management strategies and processes

2. Monitor project costs

2.1 Monitor income and expenditure against project budget and established cost estimates at predetermined intervals

2.2 Identify and report variations in budget using established project cost methods, techniques and tools

2.3 Assist in managing budget and costs using established cost management strategies and processes

2.4 Confirm cost objectives remain achievable throughout project life cycle

2.5 Update cost estimates and budget according to income and expenditure

3. Contribute to cost-finalisation process

3.1 Assist relevant personnel to review final project outcomes, budget and costs

3.2 Seek feedback and identify cost-management improvements

3.3 Document cost-management improvements based on feedback received

Evidence of Performance

The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:

support project managers and other team members to apply project cost management techniques during at least two different projects.


Evidence of Knowledge

The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:

budgeting processes

cost estimation methods, techniques and tools

project life cycle

cost management strategies and processes

financial assets, liabilities and records

cost management tools and techniques.


Assessment Conditions

Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.

This includes access to:

project management budgets and related documentation

organisational policies and procedures relating to financial assets, liabilities and records.

Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.


Foundation Skills

This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.

SKILL

DESCRIPTION

Reading

Applies appropriate strategies to construct meaning from complex texts

Writing

Prepares reports and reviews matching writing style to purpose and audience

Oral Communication

Uses clear language and appropriate features to convey and discuss cost-management issues

Numeracy

Extracts and evaluates mathematical information embedded in a range of tasks and texts

Uses a range of informal and formal oral and written mathematical language and symbols to communicate mathematically

Self-management

Identifies and follows protocols

Teamwork

Collaborates and cooperates with others to achieve shared goals

Planning and organising

Reflects on outcomes to identify future improvement opportunities


Sectors

Business Competence – Project Management