Elements and Performance Criteria

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Resource requirements may include:
equipment
facilities
fees and charges
human resources
materials
services
statutory costs.
Others may include:
program manager
project specialists
relevant project authority
subject matter experts
team members.
Project costs are estimated considering:
contingencies to allow for identified risks and uncertainty
degree of accuracy required (tolerance levels)
information available at the time
organisational requirements, for example overhead and profit margin
work breakdown structure.
Delegated authority means that activities will:
be conducted routinely or as changing circumstances dictate
be done independently within broad guidance
involve consultation with other project members, teams and internal stakeholders
involve taking a lead role in a team where required
involve the selection, use and supervision of appropriate cost-management methods, tools and techniques
take into account internal organisational change and external environmental change.
Financial-management processes and procedures may include:
approval processes
communication and reporting processes
financial authorisations and delegations
invoice procedures
organisational chart of accounts links.
Financial completion may include:
allocations and distributions
final payments
financial reports
organisational project accounting procedures
project accounts finalisation
variations statement.
Review may include evaluations of:
agreed major milestones, for example phases and subcontracts
change of key personnel
contingencies
delivery of major deliverables
finalisation of project and other agreed milestones
variations.
Records may include:
budgets, commitment and expenditure
cash flows
cost-management lessons learned
cost-management plans
invoice and payment summaries
lists of potential costs
project and/or organisational files and records
quotations
recommended and approved courses of action
reports to relevant stakeholders.

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:

applying budgetary processes, tools and techniques relevant to the project context
monitoring project costs across the project life for a project of sufficient complexity to demonstrate the full range of performance requirements
preparing a budget for a project.
Context of and specific resources for assessment
Assessment must ensure:

access to workplace documentation, including budgets and other financial documents
consideration of feedback from project stakeholders on how costs were managed.
Method of assessment
A range of assessment methods should be used to assess practical skill and knowledge. The following examples are appropriate for this unit:

direct questioning combined with review of portfolios of evidence and third-party workplace reports of on-the-job performance by the candidate
oral or written questioning to assess knowledge of strategies for managing project costs and their application in different situations
analysis of responses addressing case studies and scenarios that present issues and problems in project cost management
review of developed and implemented cost-management plan
review of documentation about project outcomes, cost-management issues and identified improvements.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.