This is the process of monitoring the status of the project to update the project budget and managing changes to the cost baseline. It involves taking the cost baseline and performance data about what has actually been done in order to determine the work accomplished against the amount spent. Monitoring of expenditure of funds without regard the value of work being accomplished for such expenditures has little value to the project other than to allow the project team to stay within the authorized funding. The key of effective cost control is the management of the approved cost performance baseline and the changes to that baseline. For those project that are funded at various stages during the project, funding requirements will need to be taken into account so that the project doesn’t get to be point that funding is temporarily unavailable.
