The development of a management plan that identifies alternative strategies to be used to ensure project success if specified risk events occur.
The amount of money or time needed above the estimate to reduce the risk of overruns of project objectives to a level acceptable to the organization.
A contract is a mutually binding agreement that obligates the seller to provide the specified product and obligates the buyer to pay for it. Contracts generally fall into one of three broad categories:
Managing the relationship with the seller.
Completion and settlement of the contract, including resolution of any open items.
The process of comparing actual performance with planned performance, analyzing variances, evaluating possible alternatives, and taking appropriate corrective action as needed.
Previously called a Cost Account Plan. The CAP is a management control point where the integration of scope and budget and schedule takes place, and where the measurement of performance will happen. CAPs are placed at selected management points of the wor
Control charts are a graphic display of the results, over time and against established control limits of a process. They are used to determine if the process is "in control" or in need of adjustment.
Changes made to bring expected future performance of the project in line with the plan.
Allocating the cost estimates to individual work activities.
Controlling changes to the project budget.
Developing an approximation (estimate) of the cost of the resources needed to complete project activities.
The costs incurred to ensure quality. The cost of quality includes quality planning, quality control, quality assurance, and rework.
The cost efficiency ratio of earned value to actual costs. CPI is often used to predict the magnitude of a possible cost overrun using the following formula: BAC/CPI = projected cost at completion. CPI = EV divided by AC.
A type of contract where the buyer reimburses the seller for the seller's allowable costs (allowable costs are defined by the contract) plus a fixed amount of profit (fee).
A type of contract where the buyer reimburses the seller for the seller's allowable costs (allowable costs are defined by the contract), and the seller earns its profit if it meets defined performance criteria.
This category of contract involves payment (reimbursement) to the contractor for its actual costs. Costs are usually classified as direct costs (costs incurred directly by the project, such as wages for members of the project team) and indirect costs (co
Taking action to decrease the total project duration after analyzing a number of alternatives to determine how to get the maximum duration compression for the least cost.
Any activity on a critical path. Most commonly determined by using the critical path method. Although some activities are "critical," in the dictionary sense, without being on the critical path, this meaning is seldom used in the project context.