Project Cost Management

(Project Management Tip)

If you’ve been around projects long enough, especially big ones, you may have encountered project managers butting heads with finance teams.

On more than one occasion we’ve come across unusual expectations around financial years vs whole of life costs and budgets. Not to mention the limitations of finance systems trying to manage cost capture against cost breakdown structures, and general ledgers. These are not competing ideals, just different needs and perspectives on the same thing, the management of your project costs.

There are finance systems that should be able to readily account for project finances, however sometimes these systems are just out of reach for some projects. If your project can afford it, engage an expert cost controller to connect the two worlds.

However, if you don’t have the luxury of a dedicated resource or the proper software but you have a project running across multiple years, remember:

  • Projects manage finances against cost and work breakdown structures over the life of the project.
  • Accountants manage finances against a general ledger over financial years, including your project.

Aim to connect these two worlds as they can, and do work together often with both a technical and relational fix.

Subscribe to the Core PA E-News for more project management tips.