• conceived or aligned to the strategic goals
• project is formally acknowledged through project charter
• project is detailed out: scope refinement
• project costs are estimated: subset of cost management plan

• Formally authorizes the existence of the project
• Provides PM with authority to apply company resources
• Formal agreement between the contractor and owners
• Externally contract can be used as project charter
• Internally used as an initiator
• Can't be used as a contract as ther is no exchange of money promised.

1. Project purpose
2. Project objectives
3. High level requirements
4. High level project description and boundaries
5. Summary of Milestone schedule
6. Summary of budget
7. Roles, responsibilities and authority levels
8. Stakeholders' list
9. Project approval requirements

1. Summary budget: required for establishing the project costs
2. Project purpose: what is the end results required
3. Project objectives: quality, fast track
4. Project description and boundaries: complexity, location
5. High level risks: details of scope

1. Validate Scope
2. Control Scope

1. Project Management Plan
2. Project Charter
3. Enterprise and Enviromental Factors
4. Organizational Process Assets

1. Expert Judgement
2. Meetings

1. Scope Management Plan
2. Requirements Management Plan

1. Scope Management Plan
2. Requirements Management Plan
3. Stakeholder Management Plan
4. Project Charter
5. Stakeholder Register

1. Interviews
2. Focus Groups
3. Workshops
4. Group Techniques
5. Group Decisions Making
6. Questionaries and surveys
7. Prototypes
8. Benchmarking
9. Context Diagrams
10. Document Analysis

1. Requirements Documents
2. Requirements Tracibility Matrix

1. Scope Mangement Plan
2. Project Charter
3. Requirements Documents
4. Organizations Process Assets

1. Expert Judgement
2. Product Analysis
3. Alternatives Generation
4. Facilitated Workshops

1. Project Scope Statement
2. Project Document Updates

1. Scope Management Plan
2. Project Scope Statement
3. Requirements Documents
4. Enterprise Environmental Factors
5. Organizatinal Process Assets

1. Decomposition
2. Expert Judgement

1. Scope Baseline
2. Project Documents Updates

• Code of Account Identifier
• Description of work
• Assumptions and Constraints
• Responsible Organization
• Associated Schedule Activities
• Resources Requirements
• Cost Estimates
• Acceptance Criteria
• Technical References
• Agreement Information

1. Project Scope Statement
2. WBS
3. WBS Dictionary

1. Scope Baseline

• Cost Accounting - Past Project Costs
• Cost Engineering - Project Controls (Forecasting)
• Cost Estimating - Furture Project Costs

EACH HAS A FUNCTIONAL ROLE

• Plan Cost Management
• establishes the policies, procedures, and documentation for planning, managing, executing and controlling project costs.
• Estimate Costs
• establishes the costs of the monetary resources needed to complete the project activities.
• Determine Budget
• process of aggregating the estimated costs of activities and work packages to establish cost baseline.

1. Project Management Plan
2. Project Charter
3. Enterprise Environmental Factors
4. Organizations Process Assets

1. Expert Judgement
2. Analytical Techniques
3. Meetings

1. Cost Management Plan

• Units of measure of each resource
• Level of precision and accuracy(cost estimate)
• Link to WBS element/control account
• Control thresholds(when to take action)
• Rules of performance measurement:establish EVM (earned valued management)
• Reporting formats-contents and frequency
• Additional manager escalation(local) and inflation (broader)

• Direct Costs of Materials, Equipment and Labour directly involved with the project activity
• Indirect Costs that support Project but not specific to any poject activity. Indirect Labour costs needed for activities but not part of the final installation, product or goods produced
• Fixed Costs-consistent costs on a project regardless on how many units are produced
• Variable Costs-cost fluctuation with the amount produced

• Expert Judgement-Historical Data
• Analogous Estimating
• Actual Costs of similar Projects
• Used when there is limited information
• Bottom-Up Estimating
• Individual work packages
• Highest level of detail
• Parametric Estimating
• Statistical Data
• Three Point Estimating
• Uses "PERT" 3 estimates to define approximate range for activity costs
• Reserve Analysis
• PM Software
• Group Decisions
• Cost of Quality
• Vendor Bid Analysis 

Is a document that describes supporting details for activity costs. Supporting detail should include:

• Design Basis
• Planning Basis
• Cost Basis
• Allowances
• Assumptions, exclusions, constraints and exceptions
• Risks
• Contingency 

1. Activity Cost Estimate
2. Basis of Estimate
3. Project Documents Updates

1. Cost Management Plan
2. Scope Baseline
3. Activity Cost Estimate
4. Project Schedule
5. Resources Calendars
6. Risk Registar
7. Agreements
8. Organization Process Asset

1. Cost Aggregation
2. Reserve Analysis
• Contingency reserve (funds to cover the cost of uncertainties)
• Statistical Analysis or Expert Judgement (range estimate, Monte Carlo Simulation)
• Management Reserve (funds from project and controls the funds for the purpose of funding unforseen work with scope and unknown-unknowns risks-this reserve is not included in estimate baseline but will be added if used)

1. Cost Baseline (approved version of time-phased project budget excluding management reserve)
2. Project Funding Reserve
3. Project Documents Updates