Project Cost Baseline

The Project Cost Baseline is a key element of project management that defines the approved version of the project's cost. Understand how project cost baseline is different from project budget. Here are few important points about cost baseline:

• Approved time-phased cost estimate for project activities.
• Excludes management reserves, includes contingency reserves.
• Used for performance measurement (e.g., Earned Value Management).
• Helps monitor/control project costs.
• Variances indicate cost overrun or savings.
• Part of the project management plan.
• Based on Work Breakdown Structure (WBS).