SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Develop a project cost management plan for a simple to moderately complex project 
SAQA US ID UNIT STANDARD TITLE
243813  Develop a project cost management plan for a simple to moderately complex project 
ORIGINATOR
SGB Project Management 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Project Management 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular-Fundamental  Level 5  Level TBA: Pre-2009 was L5  12 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
The person credited with this unit standard is able to describe and apply cost planning processes and techniques for a moderately complex project. Learners will be able to develop a project cost baseline and consolidate information towards obtaining agreement of a cost management plan. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
It is assumed that learners are competent in:
  • Mathematical Literacy at NQF level 4 or equivalent.
  • Communication at NQF level 4 or equivalent.
  • Computer Literacy at NQF level 3 or equivalent.
  • Unit Standard: Develop an optimised work and resource schedule for a simple to moderately complex project at NQF level 5.
  • Unit Standard: Participate in the estimation and preparation of cost budget for a project or sub-project and monitor and control actual cost against budget at NQF level 4. 
    		•

    UNIT STANDARD RANGE 
    Simple to moderately complex project can be defined as projects with; moderate financial impact (negative or positive) on the organization; moderate cost, moderate return and or low to moderate period of time before return of investment.

    Projects includes but it is not limited to all projects including technical, developmental and business related projects:
  • Elements of work includes, but it is not limited to projects, sub projects, phases of projects, stages, tasks or activities or work packages.
  • Elements of costing and budgeting include forecasting and estimating.
  • Fixed costs include rent, labour and overheads.
  • Variable costs include materials, equipment, transport and resource. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Demonstrate an understanding of cost management planning processes and techniques. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The purpose and content of a cost management plan are described focussing on the benefit derived of having an effective plan. 

    ASSESSMENT CRITERION 2 
    Processes for producing a project cost management plan are described with examples which are in line with organisational requirements. 

    ASSESSMENT CRITERION 3 
    Alternative costing methods and models are described with examples of their impact. 
    ASSESSMENT CRITERION RANGE 
    Includes but is not limited to: top down, bottom up, activity based, life cycle costing.
     

    ASSESSMENT CRITERION 4 
    Factors affecting project costs are identified and explained with examples of how these factors affect the project costs. 
    ASSESSMENT CRITERION RANGE 
    Includes but is not limited to: constraints, time, resource availability, exchange rates, interest rates.
     

    ASSESSMENT CRITERION 5 
    The importance of managing income and expenditure on a project is explained with examples of how they impact on the project outcome. 
    ASSESSMENT CRITERION RANGE 
    Includes but is not limited to: impact of late payment, forecast of impact of changes, alignment with organisational cash flow, payment schedules, impact on profit expected.
     

    SPECIFIC OUTCOME 2 
    Develop cost estimates for a simple to moderately complex project. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Tools and templates for developing and recording cost estimates are sourced and agreed with relevant parties. 
    ASSESSMENT CRITERION RANGE 
    Parties could include but are not limited to: management, accounts department, project office, client, donor.
     

    ASSESSMENT CRITERION 2 
    Cost management standards and policies are sourced and adapted for a project in agreement with relevant parties and in accordance with organisational policy. 
    ASSESSMENT CRITERION RANGE 
    Parties could include but are not limited to: management, accounts department, project office, client, donor.
     

    ASSESSMENT CRITERION 3 
    Project scope, needs and constraints are interpreted and their impact on cost estimates recorded in accordance with organisational procedures. 
    ASSESSMENT CRITERION RANGE 
    Place in project lifecycle, payment dates impact.
     

    ASSESSMENT CRITERION 4 
    Resource needs are verified and resource costs are sourced in accordance with agreed procedures. 

    ASSESSMENT CRITERION 5 
    Cost estimates are developed and recorded in accordance with project needs. 
    ASSESSMENT CRITERION RANGE 
    Cost estimates could include but are not limited to: scope, schedule, procurement plan, risk resource plan.
    Developed may include calculating and/or gathering estimates from relevant sources.
     

    ASSESSMENT CRITERION 6 
    Risks associated with cost estimates are analysed and preventative or recovery action with cost implications are agreed in required format. 

    ASSESSMENT CRITERION 7 
    Contingency or reserve estimates are developed and recommended in accordance with organisational procedures. 

    SPECIFIC OUTCOME 3 
    Develop the project cost baseline. 
    OUTCOME RANGE 
    Cost baseline is a time phased budget that is used as a basis against which to measure, monitor and control overall cost performance on the project. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Cost estimates are consolidated and figures checked for correctness and accuracy in terms of agreed standards, rules and project needs. 

    ASSESSMENT CRITERION 2 
    Cost of related groups of activities are aggregated according to agreed needs and structures. 
    ASSESSMENT CRITERION RANGE 
    Needs and structures could include but are not limited to: Work Breakdown Structure (WBS), Chart of Accounts, Schedule.
     

    ASSESSMENT CRITERION 3 
    Agreement is obtained on the time-phases to be used for recording expectation of occurrence of funding and or commitments and or income and or expenditure. 
    ASSESSMENT CRITERION NOTES 
    Different conditions apply to projects when they are affected by funding, commitments, income, expenditure which need to be accounted for. The project needs to be aligned with organisational financial management systems. 

    ASSESSMENT CRITERION 4 
    Cash flows that reflect control needs of the project and/or organisation are produced in accordance with agreed formats. 

    ASSESSMENT CRITERION 5 
    Contingency and reserve management needs are estimated and recorded according to required methods. 

    ASSESSMENT CRITERION 6 
    Budget outputs are consolidated into a cost baseline in accordance with required organisational format and procedure. 

    SPECIFIC OUTCOME 4 
    Consolidate information and agree cost management plan. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Supporting information is consolidated and recorded in agreed formats. 
    ASSESSMENT CRITERION RANGE 
    Supporting information could include but is not limited to: assumptions, constraints, standards used market conditions, risk analysis.
     

    ASSESSMENT CRITERION 2 
    Process and procedures to be used to manage the finances of the project are agreed and recorded in required format. 
    ASSESSMENT CRITERION RANGE 
    Manage could include but is not limited to: plan, control, evaluate, pay.
     

    ASSESSMENT CRITERION 3 
    Roles and responsibilities associated with cost management are agreed and recorded in accordance with organisational practices and procedures. 
    ASSESSMENT CRITERION RANGE 
    Roles and responsibilities could include but is not limited to: decision making, authorisation, payment processing, recording, performance analysis, budget maintenance.
     

    ASSESSMENT CRITERION 4 
    Financial data is presented in required format. 

    ASSESSMENT CRITERION 5 
    Risk contingency and reserve management needs, process and responsibilities are agreed and documented. 

    ASSESSMENT CRITERION 6 
    Cost management plan is compiled incorporating all components as per agreed procedures. 

    ASSESSMENT CRITERION 7 
    Cost management plan is agreed by relevant parties following organisational procedure. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • An individual wishing to be assessed (including through RPL) against this unit standard may apply to an assessment agency, assessor or provider institution accredited by the relevant ETQA.
  • Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this unit standard or assessing this unit standard must be accredited as a provider with the relevant ETQA.
  • Moderation of assessment to be conducted by an accredited provider according to internal approved provider policy and the relevant ETQA guidelines.
  • Moderation of assessment will be conducted by the relevant ETQA at its discretion. 
    		•

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
  • Knowledge project budget preparation.
  • An understanding of the cost management plan.
  • Knowledge of data gathering, assessing and integrating information skills and techniques.
  • Knowledge of cost estimation techniques, methods and models.
  • Knowledge of statistical analysis and forecasting methods.
  • Knowledge of budgeting techniques and processes.
  • An understanding of baseline concepts.
  • Knowledge of risk assessment techniques.
  • An understanding of cash flow concepts, income/expenditure and profit and loss. 
    		•

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identify and solve problems pertaining to the development of a cost management plan. 

    UNIT STANDARD CCFO WORKING 
    Work effectively with others in the process of monitoring and controlling the cost management plan. 

    UNIT STANDARD CCFO ORGANISING 
    Organise and manage oneself and ones activities in such a way so as to have all the required information and equipment at hand when developing a cost management plan. 

    UNIT STANDARD CCFO COLLECTING 
    Collect, analyse, organise and critically evaluate information pertaining to the estimating, preparing and monitoring a cost management plan. 

    UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively with relevant parties regarding elements of the cost management plan. 

    UNIT STANDARD CCFO SCIENCE 
    Use science and technology to estimate and prepare a cost management plan for a project. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    Terms, techniques and processes referred to in this unit standard are based upon recognised best practice for generic project management reflected in industry standards such as:
  • Standards from Project Management Institute (PMI®) such as:
    > A Guide to the Project Management Body of Knowledge (PMBoK Guide), 2000 and 2004 versions, from Project Management Institute (PMI®).
    > Extensions to PMBoK® Guide from PMI®.
    > Work Breakdown Structure.
    > Earned Value.
  • Body of Knowledge from Association for Project Management, UK.
  • ISO 10006.
  • British Standard 6079.
  • IPMA Competence Baseline from International Project Management Association.
  • Project Management role delineation studies from PMI® for CAPM and PMP.
  • Project Management Competency Development Framework from PMI® 2002.
  • Emerging global performance standards for project management personnel (GPSPMP - Global).
  • Australian National Competency Standards for Project Management 2003. 
    		•

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  58395   National Certificate: Project Management  Level 5  Level TBA: Pre-2009 was L5  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  SERVICES 
    Core  58309   National Diploma: Project Management  Level 5  NQF Level 05  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  SERVICES 
    Elective  65649   National Certificate: Official Statistics  Level 5  Level TBA: Pre-2009 was L5  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  PSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    NONE 


    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.