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______________________________________________________________________________

Project Name
Cost Management Plan
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Prepared By: xxxxxxxxx

Date of Publication: mm/dd/yyyy

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Cost Management Plan
Table of Contents
PURPOSE...................................................................................................................................................................1
COST BASELINE.....................................................................................................................................................1
COST MONITORING AND CONTROL...........................................................................................................1
BUDGET UPDATES................................................................................................................................................1
COST REPORTS......................................................................................................................................................1
ROLES AND RESPONSIBILITIES...................................................................................................................2
FREQUENCY.............................................................................................................................................................2
FEEDBACK.................................................................................................................................................................2
BUDGET CHANGE REVIEW AND APPROVAL..........................................................................................2
TOOLS..........................................................................................................................................................................2
BUDGET INTEGRATION......................................................................................................................................3
PROJECT APPROVALS.........................................................................................................................................4

ii

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Cost Management Plan
Revision History
Version

Date

2012v1.
0

2012030
1

Author(s)
State of Maine
Project Management
Office

Revision Notes
Ten Step Standard template customized
for State of Maine logos

iii

Maine Project Management Office (insert file name here)

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Cost Management Plan

Purpose
This section provides a brief statement to define the purpose of the plan such as
The Cost Management Plan describes the process that will be used to determine
how cost variances will be managed. (Remove this comment section from final
document.)

Cost Baseline
This section provides a description of the cost baseline or time-phased budget to be
used to measure and monitor project cost performance. It can be presented in the
form of an S-surve if desired. (Remove this comment section from final document.)

Cost Monitoring and Control

This section describes who will be responsible for monitoring cost variances to
detect and understand variances from the plan. It also describes what actions will
be taken to bring expected costs within acceptable limits. (Remove this comment
section from final document.)

Budget Updates
This section describes how budget updates because of changes to the approved
cost baseline will be handled. It includes who should be notified when budget
updates occur. (Remove this comment section from final document.)

Cost Reports
This section describes the cost reports to be prepared, the frequency of these
reports, the distribution and review of the reports, and responsibility for report
preparation. (Remove this comment section from final document.)

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Cost Management Plan

Roles and responsibilities

You can describe different roles and their ability to access the project budget.

Budget owner. This is probably the project manager.

Who can approve expenses? This is important to identify up-front. It is possible

that only the project manager can approve project expenses, but in some
instances this can be delegated to someone closer to the expense. For instance,
if you have contractors working within project teams, it is possible that the team
leader will be authorized to approve the timesheets for these contractors.

Who can read? The budget numbers may or may not be sensitive information.
You should decide who else can have access to the actual expenditures and
budget information.

Frequency
You should describe the timing of budget analysis. On many projects this may be
monthly since that is the frequency most General Ledger reports are available. On
some projects, the expenses may need to be tracked weekly, even if it is a manual
process.

Feedback
This describes how the budget feedback will be delivered. This is probably going to
be automated reports from the General Ledger system or a manual tracking
process, or both.

Budget change review and approval

This is where you define the process required to evaluate and approve proposed
budget changes. It defines the authority for accepting and approving changes to the
budget. This approval process does not include internal line item expenses. It
applied to changes in the overall project budget. It is possible that the project
manager may have some discretion to exceed the budget by a certain percentage,
but after that threshold some formal body may need to approve the change.

Maine Project Management Office (insert file name here)

Copyright 2007-2008 TenStep, Inc. All Rights Reserved

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Cost Management Plan

Tools
Describe about any budgeting tool that will be used on this project, who will have
access to the tool and what various people can do with the tool (read the budget,
update numbers, etc.)

Budget integration
Normally each project keeps an independent budget, but in some instances your
master budget is the result of a roll-up of other underlying budgets. It is also
possible that your budget could be integrated and rolled up to a higher-level
program or portfolio budget.

Maine Project Management Office (insert file name here)

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Cost Management Plan

Project Approvals
Add any signatures that are important for the approval of the project. (Remove this
comment section from final document.)

________________________________

_________________

Project Executive Sponsor xxxxx

________________________________

Date
_________________

Project Sponsor xxxx xxxx

Date

________________________________

__________________

Project Director xxxx xxxx

Date

________________________________

__________________

Project Manager xxxx xxxx

Date

Maine Project Management Office (insert file name here)

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