Part 123: Cost Baseline

Part 123: Cost Baseline
(OUTPUT Project Cost Management: Determine Budget)

• The Cost Baseline is the approved version of the time-phased project budget (excluding management reserves)
• Can only be changed through a formal change control procedure
• Used as a basis for comparison to actual results
• Remember
  • The Cost Baseline is the sum of the Work Package Cost Estimates (what the activities will cost) and the Contingency Reserve (accounts for known-unknowns).  It is the same value as the sum of the Control Accounts

The Project Budget is the sum of the Cost Baseline and the Management Reserve (accounts for unknown-unknowns)