Unit of competency details

BSBPMG514A - Manage project cost (Release 1)

Summary

Releases:
ReleaseStatusRelease date
1 1 (this release)Current 18/Mar/2013

Usage recommendation:
Superseded
Mapping:
MappingNotesDate
Supersedes BSBPMG504A - Manage project costsNew unit code. Revised and updated unit descriptor and application of unit section. New performance criterion 1.3. Substantially rewritten and clarified performance criteria. Expanded and updated range statement. Updated and clarified evidence guide. Removed assessment requirement for ‘multiple complex projects’. 17/Mar/2013
Is superseded by and equivalent to BSBPMG514 - Manage project costUpdated to meet Standards for Training Packages 24/Mar/2015

Training packages that include this unit

CodeTitleSort Table listing Training packages that include this unit by the Title columnRelease
RII - Resources and Infrastructure Industry Training PackageResources and Infrastructure Industry Training Package 1.0-1.4 
CUA - Creative Arts and Culture Training PackageCreative Arts and Culture Training Package 1.0 
BSB07 - Business Services Training PackageBusiness Services Training Package 8.0-9.0 
AUM - Automotive ManufacturingAutomotive Manufacturing 1.0 

Classifications

SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 080315 Project Management  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 080315 Project Management  03/Oct/2013 
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Modification History

Release 

Comments 

Release 1

This version first released with BSB07 Business Services Training Package Version 8.0.

Replaces BSBPMG504A Manage project costs.

Unit Descriptor

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.

Application of the Unit

This unit applies to those responsible for managing and leading a project in an organisation, business or as a consultant.

The project manager operates according to assigned authority levels, and is responsible for own performance and the performance of others.

The project manager may undertake the work in the context of an organisational program and/or portfolio of projects.

This unit has generic application for projects in a range of industries, organisations and contexts.

In the context of this unit a project is defined as involving:

  • a comprehensive, detailed and integrated project management plan
  • a formal communications plan
  • a dedicated and project-based budget
  • formal and planned engagement with a wide range of stakeholders
  • a documented risk, issues and change-management methodology
  • a quality plan with assurance and control processes
  • a project team-based environment.

Licensing/Regulatory Information

No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.

Pre-Requisites

Not applicable.

Employability Skills Information

This unit contains employability skills.

Elements and Performance Criteria Pre-Content

Element 

Performance Criteria 

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

Elements and Performance Criteria

1. Determine project costs

1.1 Determine resource requirements  for individual tasks identified in the work breakdown structure, with input from stakeholders and guidance from others 

1.2 Estimate project costs  to enable project budget to be prepared within agreed tolerances

1.3 Develop a project budget

1.4 Develop 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 against budget

2.2 Select and use cost-analysis methods and tools to identify cost variations and evaluate alternative actions

2.3 Implement and monitor agreed actions to maintain financial objectives

2.4 Provide accurate and timely financial reports

3. Complete cost-management processes

3.1 Conduct appropriate activities to signify financial completion 

3.2 Review  project outcomes using available records  to determine the effectiveness of project cost management

3.3 Review cost-management issues and document improvements

Required Skills and Knowledge

This section describes the skills and knowledge required for this unit.

Required skills 

  • analytical skills to evaluate processes and recommend improvements
  • numeracy and budgeting skills to monitor expenditure and manage project costs
  • technology skills to use software for recording expenditure and reporting on the project budget and costs.

Required knowledge 

  • budgeting processes, tools and techniques
  • methods and tools for costing and cost analysis.

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:

  • 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.

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.

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.

Unit Sector(s)

Management and Leadership – Project Management

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