Elements and Performance Criteria

RANGE STATEMENT
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.
Cost estimation may take account of:
availability of information at the time
contingencies to allow for identified risks and uncertainty
government regulations, industry codes of practice and organisational influences
overhead and profit margin
stage in each project's life cycle
Cost management plans and activities throughout program management may:
be conducted non-routinely to meet complex and changing circumstances
be done independently or by taking the lead in a team environment
involve consultation with, and selective involvement of, appropriate project stakeholders
involve the selection, modification and supervision of the use of appropriate cost management methods, processes, procedures, tools and techniques
take into account the impact of organisational and environmental change on the project/program and vice versa
Management of project finances may include:
approval processes
audit and review
communication, reports and briefs
financial authorisations/delegations
invoice procedures
Development of cost management systems may involve:
application of personal judgement
authorising and revising financial delegations
cost modelling and estimating
financial analysis, for example benefit-cost analysis, cash flow analysis, earned value analysis
modification of program methodologies and procedures
program obligation, expenditure forecasting and long-term planning
progress and financial change management
Finalisation activities may include:
comparison of one project's cost management outcomes with success rates of other projects and with overall (organisation) budgetary expectations
direction of project team managers in their:
final audit/reconciliation
close-out of account codes and other financial documentation
settling of financial liabilities
transfer of assets to the client or originating owner
transition of responsibility/ownership of project deliverables/products
warranty requirements resolution
Records may take the form of:
budgets, commitment and expenditure
cost management lessons learned
cost management plans
financial charts and graphs
financial summaries
program and/or organisation files and records
records of potential and actual costs
reports to higher authority

EVIDENCE GUIDE
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:
demonstrated experience in directing cost management approaches across a range of concurrent projects
knowledge of regulatory and legislative financial reporting requirements.
Context of and specific resources for assessment
Assessment must ensure:
access to financial documentation and files
consideration of feedback from project team and other stakeholders as to how program 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 of scope management techniques by the candidate
analysis of responses addressing different project cost management case studies and scenarios
oral or written questioning to assess knowledge of strategies for managing project costs and their application to different situations
review of written reports on financial outcomes of projects
review of how cost management systems were developed and maintained.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:
other units in the Advanced Diploma of Project Management.