^ [[9 Monitor & Control]] # 9.3  Control Cost The purpose of cost control is to manage the project costs so that they conform to the **cost/effort baseline** and overall project **budget constraints**. The Project Manager (PM) regularly monitors the budget and tracks the **difference between budgeted, actual and expected costs**. If the project **budget is at risk**, the Project Steering Committee (**PSC**) needs to be informed and **corrective actions must be devised, agreed and implemented**. If considerable cost overruns are foreseen, these need to be justified, **reported to** and approved by the Project Owner (**PO**) or the Appropriate Governance Body (**AGB**). **Note**: The project budget must have been approved by the Project Owner (PO) at the beginning of the project. ![[Table 9.3 - Control Cost - Key Participants.png]] ## Inputs - Project Handbook - Project Work Plan - Outsourcing Plan (if applicable) - Change Log (and other relevant Project Logs) - Minutes of Meetings (MoMs) and Project Reports from previous reporting periods ## Steps 1. **Track** the project’s effort/overall **budget** consumption as defined in the Project Handbook. 2. Regularly **review** the project budget **with** the Project Owner (**PO**). 3. Evaluate and **communicate** any **differences** between budgeted and actual project costs, securing **approval** for significant differences **from** the Project Owner (**PO**). 4. Devise and plan the implementation of **corrective actions** that will bring the **budget back on track**. 5. If the project budget needs to be **considerably revised**, this ==must be justified and documented== (e.g. in the **Project Progress Report**). Formal approval from the Appropriate Governance Body (**AGB**) is required before the **affected plans can be re-baselined**. 6. If there is an **impact on the project schedule, risks or quality**, this must be reviewed and **approved** by the Project Owner (**PO**) and **communicated** to any affected project **stakeholders**. ![[Fig 9.4 Control Cost inputs - outputs and main roles.png]] ![[Table 9.3 - Control Cost - Related Artefacts.png]] ## Outputs - Project Work Plan (updated) (PM2 Template) - Project Logs (updated) (PM2 Template) ___ Spanish Guide: [[9.3 Control de Costes]] <-- [[9.2 Control Schedule]] --> [[9.4 Manage Stakeholders]]