ABSTRACT
Managing costs, along with managing the project’s time and scope are the keys to running a successful project. Estimating costs requires the careful consideration of project resources—the people, materials, and equipment that are needed to successfully complete the project. When considering costing and budgeting, there are some specific cost categories to consider: direct costs and non-direct costs. The most accurate and also the most time-consuming, and therefore the most expensive, cost estimating technique is bottom-up cost estimating. It uses the work breakdown structure as a basis to estimate costs. Managing project costs, along with managing project time, quality, and expectations are the four most important functions the project manager can perform in order for a project to be successful. There are additional costs and cost categories that should be considered, especially when making definitive estimates. For instance, there are costs incurred during the end of the implementation and the beginning of revenue-producing operations.
