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 |
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Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Evidence of the following is essential:
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Context of and specific resources for assessment |
Assessment must ensure:
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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:
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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: |
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Others may include: |
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Project costs are estimated considering: |
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Delegated authority means that activities will: |
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Financial-management processes and procedures may include: |
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Financial completion may include: |
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Review may include evaluations of: |
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Records may include: |
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Unit Sector(s)
Management and Leadership – Project Management