ABSTRACT
This chapter presents the method and tools for competence modelling for project knowledge management. On the basis of this and also using a fuzzy competence model the cost estimation model in the form of a group competencies expansion algorithm is proposed. The fuzzy sets theory developed by Zadeh was applied for the theory of competence. In the early stage of the research on competence representation models, competence was presented as a classical set containing knowledge, skills and information necessary to solve a problem. The proposed method works at the knowledge level and employs competence sets as knowledge representation models in educational organisations. In the context, the strongest institute is the institute that has the smallest difference between the background strength of obtaining a competence and the critical level of obtaining this competence. The difference is proportional to the cost of obtaining a competence.
