Project Cost Management Word Template : Free Download

PCM (Project Cost Management) is a method used to measure the productivity and the cost of projects, throughout their full lifecycle. The goal of the method is to complete the project on budget. The main challenge is estimating the needed budget for the project, and this method aims at using historical data to estimate the needed budget. 

Project Cost Management Template
Project Cost Management Template
As the project progresses actual data is used to measure how close the estimation was, and to update it if needed.

About the PCM Template Word

Cost Estimate Table – 

In order to accurately estimate the needed budget, a table is used to break down the needed budget for all the required resources.

Cost Change Requests –

As we all know all plans, projects’ scope, clients’ requests and standards change over the lifecycle. Budgets are no different, and the estimated required budget for one (or more) of the rows in the estimation table might need to be changed.

The process of requesting and approving a CR should include the following – 
  1. The CR request is submitted in a standard form to the PM by the team lead.
  2. The PM analyzes the impact approving or denying the request will have on the project.
  3. The PM makes their recommendation to the client / main sponsor, who approves / denies the request.
  4. If the CR is approved: The estimation table needs to be updated.

Payments and Invoicing Process
Payments and Invoicing Process

Payments and Invoicing Process –

  • Once the estimation is complete and the project starts rolling, the actual costs start to roll in in form of invoices. 
  • An invoice is a commercial document issued to the customer by the vendor, which relates to a sales transaction and usually indicates the agreed price, number of products and quantities of goods / services. 
  • Each invoice needs to be allocated to one of the rows in the estimation table, and aggregated with all other invoices. 
  • The aggregated actual cost is compared with the estimated one, while the overall completion of the row is taken into consideration.
Project Cost Change Request
Project Cost Change Request

Project Cost Management Best Practices

  1. It is recommended to estimate the cost based on similar projects that were carried out in the company.
  2. The table can also be used to track the actual costs and the variance between the estimated and actual costs.
  3. The cost estimation table can also be used for CR’s (Change Requests).

  4. Each invoice needs one Point of Contact (POC) that can answer questions, etc.
  5. Each invoice needs a Purchase Order (PO) number, which means that this cost was approved by the customer and funded.
  6. All invoices related to a row in the estimation table need to be aggregated into one bottom line and compared to the estimated figure.

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