Determine Budget is the process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline. This process is performed once or at predefined points in the project.

INPUTS

Project management plan
• Cost management plan
• Resource management plan
• Scope baseline
Project documents
• Basis of estimates
• Cost estimates
• Project schedule
• Risk register
Business documents
• Business case
• Benefits management plan
Agreements
Enterprise environmental factors
Organizational process assets

TOOLS & TECHNIQUES

Expert judgment
Cost aggregation
Data analysis
• Reserve analysis
Historical information review
Funding limit reconciliation
Financing

OUTPUTS

Cost baseline
Project funding requirements
Project documents updates
• Cost estimates
• Project schedule
• Risk register

Create Project Management Tasks

In the Planning list, representing Planning Process Group, create the Determine budget task and subtasks corresponding to the output of the Estimate Costs process:

  • Develop cost baseline
  • Develop funding requirements
  • Update project documents

Create Project Management Documents

In the Docs section, create the output documents:

  • Cost Baseline
  • Project Funding Requirements

The cost baseline is the approved version of the time-phased project budget, excluding any management reserves, which can only be changed through formal change control procedures. It is used as a basis for comparison to actual results. For projects that use earned value management, the cost baseline is referred to as the
performance measurement baseline. Management reserves are added to the cost baseline to produce the project budget.

Total funding requirements and periodic funding requirements (e.g., quarterly, annually) are derived from the cost baseline. The cost baseline will include projected expenditures plus anticipated liabilities. Funding often occurs in incremental amounts, and may not be evenly distributed. The total funds required are those included in the cost baseline plus management reserves, if any. Funding requirements may include the source(s) of the funding.

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