If you’re still using spreadsheets or whiteboards, it may be time to make the switch to project cost management software to increase work productivity, reduce risk, and measure costs through the full life cycle of a project.
Before choosing a cost management tool, take a look at these must-have key features.
One of the most important elements of a project cost management tool is cost estimation, which is the practice of forecasting the price of a complete project with a defined scope.
There are several types of cost estimation in project management, including fixed, variable, direct, and indirect cost estimation. Because the project scope, project schedule, or other factors can change, it’s important to update price estimates with the help of cost management software so you have an accurate idea of how much the project will cost.
Use software that employs powerful estimation capabilities, such as bottom-up estimation and project portfolio history.
These features will allow your team to measure their performance and make any necessary adjustments. In addition, project estimates will become more refined as you discover variables and actual costs.