Tips for better project cost management

Relying on Excel to manage project costs is a thing of the past. Without detracting from the platform, which is still extremely useful, the digital market offers countless tools with advantages and solutions that make work easier, integrating demands with fundamental information for project pricing.

Gipo stands out as a complete project cost management tool, as it automates the cost control of your demands with transparency, allowing management, inclusion of extra expenses, hours worked by the team and much more.

What is cost management?

Project cost management can be defined as a set of processes that ensure that it is delivered within the already approved budget. Within this management, the scope, quality, deadlines for completing the project and everything necessary for its execution and completion are evaluated.

This management brings a structured way of planning, estimating, determining and controlling costs, ensuring that nothing is forgotten and that the work is carried out within the designated budget. In practice, there is no point in thinking about elaborate details if the costs exceed what was planned and this is where this management comes in, avoiding problems when the project begins to be developed.

According to the PMO (Project Management Office), the best practices for project cost management processes with cost reduction and budget optimization can be broken down into four phases:

Plan cost management

The first step is to gather all information about the project thoroughly and completely. Enough to ensure that the budget will not be exceeded. Collect information such as values, number of items involved, whether you will rely on outsourcing, etc. You need to know what is necessary for development, so do your research.

Estimate costs

After planning possible expenses, make a cost estimate. Even though it is a hypothetical scenario, values ​​should not be raised without a good basis of realistic data. With this data in hand, you, as a manager, will be able to check budgets for everyone involved in your project.

Determine the budget

At this stage you will not be able to rely on hypotheses. The values ​​need to be consistent with the stages of your project, avoiding surprises during execution. The budget presents a projection of what it will take to execute your project from start to finish, with the best options and proposals for you to work safely.

Control costs

In this case, controlling costs can also be translated as the act of closely monitoring the completion of the project, whether everything that was planned and budgeted is being fulfilled. Cost control must be carried out during all stages of the project, maintaining consistency when comparing the predicted value and the expenses incurred.

Skipping planning steps can represent rework with incalculable losses in relation to the performance of your company and employees. With so many other simultaneous projects going on, it is essential that you have a tool that monitors each stage in a balanced manner without harming your profitability.

Gipo strategically helps you manage your demands and manage its costs, in the same tool. It monitors the health of your projects, tracking progress, effort and costs, ensuring the profitability and efficiency of the work performed. Control costs, manage receivables and update your project budgets, anywhere, anytime. Let automation help you optimize your processes.

Access our platform and optimize your project management.