Course Title: Manage project costs

Part B: Course Detail

Teaching Period: VE 2017

Class Number: 2783

Class Section: MDM1

Course Code: BUSM8796C

Course Title: Manage project costs

School: 174T School of VE Engineering, Health & Science

Campus: City Campus

Program: C5377 - Diploma of Building and Construction (Management)

Course Contact: Matthew Donato

Course Contact Phone: +61 3 9925 4519

Course Contact Email:

Name and Contact Details of All Other Relevant Staff

Nominal Hours: 40

Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

Pre-requisites and Co-requisites


Course Description

 This unit describes the performance outcomes, skills and knowledge required to identify, analyse and refine project costs to produce a budget, and to use this budget as the principal mechanism to control project cost.

National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

BSBPMG504A Manage project costs


1. Determine project costs

Performance Criteria:

1.1. Determine resource requirements for individual tasks, with input from stakeholders and guidance of others

1.2. Estimate project costs to enable budgets to be developed and implement agreed cost management processes

1.3. Develop and implement a cost management plan, within delegated authority, to ensure clarity of understanding and ongoing management of project finances


2. Monitor and control project costs

Performance Criteria:

2.1. Implement agreed financial management processes and procedures to monitor actual expenditure and to control costs

2.2. Select and use cost analysis methods and tools to identify cost variations, evaluate options and recommend actions to a higher project authority

2.3. Implement, monitor and modify agreed actions to maintain financial and overall project objectives throughout the project lifecycle


3. Conduct financial completion activities

Performance Criteria:

3.1. Conduct appropriate activities to signify financial completion

3.2. Review project outcomes using available records and information to determine the effectiveness of cost management processes and procedures

3.3. Review cost management issues and identify improvements

Learning Outcomes

Refer to elements

Details of Learning Activities

Students will be involved in the following learning activities to meet requirements for this competency:

• Face to Face classes

• Simulated Workplace Learning

• Online learning via blackboard

• Other forms of structured teaching and learning Students will be observed and assessed through their planned activities throughout the duration of the course.

Teaching Schedule

Lesson Plan ­ (Anticipated delivery chronology) 1. Determine resource requirements for individual tasks 2. Creating a resource plan 3. Constructing a resource schedule 4. Constructing a Project schedule 5. Dependencies 6. Identify the critical path and tasks 7. Modify a project schedule 8. Estimate project costs to enable budgets to be developed 9. Guiding principles to cost estimating 10. Develop and implement a cost management plan 11. Cost management planning 12. Implementation schedule 13. Implement Financial management processes and procedures 14. Actual expenses verses estimated expenses 15. Select cost analysis tools 16. Implement monitor and modify 17. Conduct activities for financial completion 18. Review cost management issues and improvements 19. Review project outcomes 20. Archive project records 21. Revision 22. In class tests

Learning Resources

Prescribed Texts


Other Resources

Students will be able to access course information and learning materials through myRMIT and may be provided with additional materials in class. Lists of relevant reference books, resources in the library and accessible Internet sites will be provided where possible. During the course, you will be directed to websites to enhance your knowledge and understanding of difficult concepts

Overview of Assessment

 Students must pass each of the following assessment tasks to demonstrate competent.

To be deemed competent you must demonstrate an understanding of all aspects required of the competency. Assessment methods have been designed to measure your achievement of each competency in a flexible manner over multiple tasks.

Assessment 1  Group based activity and work based observation in estimating processes.
Assessment 2  Written questions on implementation of the Financial Management Systems and how to monitor them. 
Assessment 3 Part A: Task 1: Group Work on Table 1 Using Table 1 in the appendix. List all the roles required to undertake the project. Identify the number of people required to fulfil each role. Describe the responsibilities and skills needed to undertake each role successfully.  Specify the timeframe during which the role will exist.
 Part A: Task 2: Group work on Table 2 Use Table 2 to list each item of equipment required to complete the project. Quantify the amount of each item needed. Describe the purpose and specifications of each item. Specify the timeframe for which the equipment will be required.
 Part A:Task 3: Group work on Table 3 Use Table 3 to list each item of material required to complete the project. Quantify the amount of each item needed. Specify the timeframe during which the materials will be required.
 Part B: Task 1: Individual Work Resource Schedule.  Build a detailed Resource Schedule (using all the information required that you have collected) use Resource Template 1 in the appendix to list the labour, equipment, materials and any other resources needed to undertake the project. Identify the dollar value of each resource required during the periods it will be needed, in the Resource Schedule.
 Part B: Task 2 Individual Work Project Schedule 1 Using the Project Schedule 1 in the appendix. Create a detailed Project Schedule by listing all the Phases, Activities and Tasks required to complete the project, along with the dependencies, sequencing and resources involved. The example template treats the construction of a Project Plan as a project in its own right.

Assessment Tasks

See Assessment Overview

Assessment Matrix

 Performance Criteria MappingAssessment 1 Assessment 2 Assessment 3 
1.1X X
2.1  X
3.3  X


Other Information

Please refer to the RMIT Student Page for extensive information about study support, assessments, extensions, appeals and a range of other matters:


Attendance It is strongly advised that you attend all sessions in order to engage in the required learning activities, ensure the maximum opportunity to gain competency.

Special Consideration Use the special consideration process if your circumstances are such that you cannot fulfil assessment requirements. For example, if you are unable to complete any piece of assessment by a due date, you will need to apply for an extension.

Academic Integrity and Plagiarism RMIT has a strict policy on plagiarism and academic integrity. Please refer to:



Recognition of Prior Learning and Credit Transfer If you think you have some or all of the knowledge and competencies described, please discuss the Recognition of Prior Learning and Credit Transfer options with may be available to you with your Course Coordinator: For more information go to:




Course Overview: Access Course Overview