Cost
Official Definition:
The project’s cost target. The Project Plan should indicate how much money all the project work will cost. This will prove that the plan is achievable within the project’s cost target.
Layman’s Definition:
Cost is how much the project is expected to spend. It’s tracked and controlled to make sure the project doesn’t go over budget. A little leeway (tolerance) might be allowed, but it needs to stay reasonable.
Examples:
• Construction: Budgeting £1.2 million for materials, contractors, and permits.
• Healthcare: Allocating £150,000 to digitise paper records.
• Education: Spending £25,000 on new tablets for students.
When to Use:
Throughout the project — cost planning happens early, and monitoring continues all the way through delivery.
What It Might Look Like in Practice:
• A cost breakdown in the Project Plan.
• Monthly budget tracking reports.
• Forecasts vs actuals.
• Highlighting when costs might exceed tolerance.