Elements and Performance Criteria

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Cost-estimating methods may include:
allowance for contingency and risk
cost of quality (COQ)
expert opinion
organisational budget and cost-control policy
organisational chart of accounts
parametric estimating
prior project history
reserve analysis
review of organisational records
top-down or bottom-up estimating.
Cost estimates may include:
application and registration fees for intellectual property (IP) and patents
contingencies identified in risk assessment
facilities
fixed costs
labour
material
project-management overheads
services
travel and accommodation
variable costs.
Others may include:
higher project authority
organisation finance controller
project manager
project specialists and other personnel
relevant accounting support personnel
team members.
Project cost methods, techniques and tools may include:
communication with stakeholders
dispute-resolution and modification procedures
implementation of financial control mechanisms
industry standard cost-management software
integration with organisational finance systems
organisational procurement policy
measurement of actual progress against planned milestones
preferred and pre-qualified supplier costs
project accounting methods
recording and reporting of variations.
Implement action may include:
revised budget forecasts
under limited guidance and supervision
variance management
within agreed authorisation and limits
within established organisational framework, procedures and routines.
Project cost records may include:
cost-management lessons learned
cost verification and validation documentation
input to cost-management plans
invoice and payment records
lists of potential costs
project and/or organisation files and records
reports to relevant stakeholders.

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:

applying cost-management techniques in relation to project budgets
reviewing project cost-management outcomes
communicating project cost budget to others effectively
knowledge of cost-management tools and techniques.
Context of and specific resources for assessment
Assessment must ensure access to:

examples of project-management budgets and related financial documentation
evidence or project records of involvement in cost-management processes.
Method of assessment
A range of assessment methods should be used to assess practical skill and knowledge. The following assessment methods are appropriate for this unit:

direct questioning combined with review of portfolios of evidence and third-party workplace reports of on-the-job performance by the candidate
analysis of responses addressing different project cost-management scenarios
oral or written questioning to assess knowledge of strategies for managing project costs
analysis of budgets and costing prepared by the candidate
review of communication to others of estimated costs for tasks and activities for inclusion in project budget
evaluation of reporting on cost-management issues and responses to project or program manager.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.