ABSTRACT
This chapter includes project cost management, costing versus pricing and types of cost estimates. It discusses information required for assigning resources/cost estimating, process for assigning resources/cost estimating and guidelines for assigning resources/cost estimating. The chapter describes contingency estimating for firm fixed price contracts and linear responsibility charts/project plan completion. Project cost management is used to ensure that a project is completed within the approved budget. Although the above cost management processes are discussed as separate functions, in practice there is a great deal of overlap. In particular, resource planning and cost estimating are so tightly linked that they can be viewed as a single process. The terms resource planning and assigning resources can be used interchangeably. Once the resources have been assigned, cost estimating can be a relatively easy procedure. Cost budgeting means establishing a cost baseline for each of the project work packages and the project as a whole.
