Cost Management: Budgeting for LumiGems

Ahmed meticulously plans the financial aspects of LumiGems, ensuring the project stays within budget.

1.Crunching the Numbers: Estimate Activity Costs

Ahmed estimating costs for specific LumiGems activities

Ahmed estimates the monetary resources needed to complete each project activity. This involves looking at labor, materials, equipment, and other direct costs for LumiGems tasks.

2.The Big Picture: Estimate the Project Cost

Ahmed calculating the total estimated project cost for LumiGems

Ahmed aggregates the estimated costs of individual activities or work packages to establish a total estimated cost for the LumiGems project.

3.Safety Nets: Add Contingency & Management Reserves

Ahmed allocating contingency and management reserves in the LumiGems budget

Ahmed includes contingency reserves for known risks ('identified risks') and management reserves for unknown risks ('unforeseen events') to buffer the LumiGems budget.

4.The Approved Budget: Develop the Cost Baseline

The approved LumiGems Cost Baseline document or chart

Ahmed finalizes the Cost Baseline, which is the approved, time-phased project budget. This baseline will be used to measure and monitor cost performance throughout the LumiGems project.

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