Unit of competency Outline

Date retreived
22/07/2026 3:54 PM AWST

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Manage project costs

Manage project costs

Unit of competency
National Code
BSBPMG504A
State Code
D0932
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
01/09/2008
View on TGA
State Implementation and Classification
Approved Date
05/11/2014
Field of Education
080315 - Project Management
Original Release Date
05/11/2014
Nominal Hours
40
Description
This unit describes the performance outcomes, skills and knowledge required to identify, analyse and refine project costs to produce a budget, and to use this budget as the principal mechanism to control project cost.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Notes
Elements and Performance Criteria
1. Determine project costs
  • 1.1. Determine resource requirements for individual tasks, with input from stakeholders and guidance of others
  • 1.2. Estimate project costs to enable budgets to be developed and implement agreed cost management processes
  • 1.3. Develop and implement a cost management plan, within delegated authority, to ensure clarity of understanding and ongoing management of project finances
2. Monitor and control project costs
  • 2.1. Implement agreed financial management processes and procedures to monitor actual expenditure and to control costs
  • 2.2. Select and use cost analysis methods and tools to identify cost variations, evaluate options and recommend actions to a higher project authority
  • 2.3. Implement, monitor and modify agreed actions to maintain financial and overall project objectives throughout the project lifecycle
3. Conduct financial completion activities
  • 3.1. Conduct appropriate activities to signify financial completion
  • 3.2. Review project outcomes using available records and information to determine the effectiveness of cost management processes and procedures
  • 3.3. Review cost management issues and identify improvements
relevant project authority
program manager
project specialists or other personnel
team members

availability of information at the time
contingencies to allow for identified risks and uncertainty
organisational requirements, for example overhead and profit margin
stage of the project life cycle

be conducted routinely or as changing circumstances dictate
be done independently within broad guidance or by taking the lead of a team
involve consultation with other project members, teams and internal stakeholders
involve the selection, use and supervision of appropriate time management methods, tools and techniques
take into account internal organisational change and external environmental change

approval processes
communication and reporting processes
financial authorisations/delegations
invoice procedures

agreed major milestones, for example phases and sub-contracts
change of key personnel
delivery of major deliverables
finalisation of project and other agreed milestones

budgets, commitment and expenditure
cost management lessons learned
cost management plans
invoice and payment summaries
lists of potential costs
project and/or organisation files and records
recommended and approved courses of action
reports to relevant stakeholders

Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

demonstrated evidence of monitoring project costs across the project life cycle for multiple complex projects
knowledge of budgeting processes, tools and techniques.

Context of and specific resources for assessment

Assessment must ensure:

access to workplace documentation including budgets, 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 to different situations.
analysis of responses addressing case studies and scenarios which present project cost management issues and problems
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, for example:

other units from the Diploma of Project Management.

Replaces
State Code National Code Title Type
C7061 BSBPM504A Manage project costs Unit of competency
Replaced By
State Code National Code Title Type
WG101 BSBPMG514A Manage project cost Unit of competency