Cost Management Plan: Bunglow Project

Running head: COST MANAGEMENT PLAN
Cost Management Plan: Bunglow Project
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1COST MANAGEMENT PLAN
Cost Management Plan: Bunglow Project
During the planning of Bunglow project, a budgetary plan has also been developed by the
project manager and finance manager. In order to accomplish the project within assigned cost
proper tools, techniques and baseline portion should be set by the finance manager (Kerzner &
Kerzner, 2017). If the cost management knowledge are is not manually maintained then
operational challenges in terms of over allocation of time and overrunning budget may occur.
Before designing the outline of the Bunglow project proper cost estimation s referred to
as one of the most effective knowledge management area which needs major focus. The
Bunglow project the net budget that has been estimated by the project finance manager at the
project initiation phase is $139,210.00. Baseline is a set of stored value mainly it defines the
original start date and finish date. After setting project baseline the earned value calculation will
become easier and measurement of ROI will also become easier (Fleming & Koppelman, 2016).
The overall cost estimating accuracy will also be improved after incorporating cost baseline into
it. The benefits that can be obtained after designing an accurate project budgetary are as follows:
 A proper budgetary plan provides a financial roadmap to the project team
members associated to the Bunglow project
 It provides appropriate internal control opportunities to the finance associates
 Cost management plan help the project finance managers to avoid the issues of
overrunning budget and over allocation of time
The cost management tools that are to be used by the project managers are as follows:
 ROI

2COST MANAGEMENT PLAN
 Cash flow analysis (inflow and outflow)
 Cost benefit analysis
Figure 1: Gantt cart of the project
(Source: created by author)