COST MANAGEMENT PLAN
International Football Tournament Stadium & Digital Ticketing Project
- Document Information
- Project Manager: Alex
- Sponsor: Ministry of Sports – Tournament Steering Committee
- Version: 1.0
- Approval Date: 20 December 2025
- Status: Approved / Controlled
- Parent Document: Project Management Plan
- Purpose
This Cost Management Plan defines how project costs will be:
- Estimated
- Budgeted
- Funded
- Controlled
- Reported
It establishes financial governance rules to ensure:
- Budget discipline
- Transparency
- Audit readiness
- Forecast reliability
- Cost Management Approach
The project uses a hybrid cost model:
Project Area | Cost Approach |
Stadium construction | Bottom-up estimating + contract pricing |
Turf system | Vendor-based estimate + contingency |
Digital platform | Rolling-wave estimation |
Integration & testing | Detailed activity-based estimation |
Governance & PMO | Resource-based estimation |
- Units of Measure
- Currency: USD
- Labor: USD per day
- Materials: USD per contract or unit
- External contracts: Lump sum or T&M per contract agreement
- Level of Accuracy
Project Phase | Estimate Accuracy Range |
Business Case | ±30% |
Planning | ±15% |
Pre-execution lock | ±10% |
Execution updates | Forecast-driven |
- Estimating Methodology
The following techniques are authorized:
- Expert Judgment
- Analogous Estimating (historical stadium data)
- Parametric Estimating (cost per seat, cost per square meter)
- Bottom-up Estimating (work package level)
- Three-Point Estimating (for risk-sensitive elements like turf and integration)
- Vendor quotations
- Cost Categories
7.1 Direct Costs
- Construction contracts
- Turf subcontractor
- Gate hardware
- Digital development vendor
- Security audit services
- Integration specialists
7.2 Indirect Costs
- PMO staffing
- Oversight consultants
- Legal & procurement support
7.3 Contingency Reserves
Allocated for identified risks (part of cost baseline).
7.4 Management Reserve
Held outside cost baseline.
Controlled by Sponsor Committee.
- Cost Baseline Structure
The Cost Baseline will be organized by WBS:
- Project Management
- Stadium Infrastructure
- Digital Platform
- Integration & Testing
- Transition & Handover
The cost baseline will include:
- All authorized work
- Contingency reserves
- Excludes management reserve
- Funding Requirements
Funding will be released in tranches:
Stage | Funding Release |
Post-Charter | Mobilization funding |
Post-Scope Baseline | Construction contract commitment |
Pre-Superstructure | Major capital release |
Pre-Integration | Digital vendor release |
Pre-Handover | Operational transition funding |
Funding schedule must align with cash-flow forecast.
- Cost Control
Cost performance will be monitored using:
- Earned Value Management (EVM)
- Cost Variance (CV)
- Cost Performance Index (CPI)
- Estimate at Completion (EAC)
- Variance at Completion (VAC)
Thresholds:
Variance Level | Action |
≤ 5% | Managed by PM |
5–10% | Escalated to PMO |
>10% | Sponsor review required |
- Contingency Reserve Policy
- Used only for identified risks
- Requires PM approval
- Must be documented in cost change log
- Does not require sponsor approval unless threshold exceeded
- Management Reserve Policy
- Controlled by Sponsor Committee
- Used for unknown-unknown risks
- Requires formal change request
- Change Control & Cost Impact
All cost impacts must include:
- Direct cost impact
- Schedule impact
- Risk exposure impact
- Funding impact
Cost baseline changes require:
- Integrated Change Control
- Sponsor approval
- Reporting
Report | Frequency | Audience |
Cost Performance Report | Monthly | Sponsor Committee |
EVM Dashboard | Monthly | PMO |
Forecast Report | Quarterly | Ministry Finance |
- Integration with Schedule & Scope
Cost estimates are traceable to:
- WBS work packages
- Activity durations
- Risk Register
- Assumption Log
Schedule compression decisions must include cost impact analysis.
- Audit & Compliance
- All vendor payments tied to contract milestones
- Public-sector procurement rules apply
- External audit review quarterly
- Cost data archived for 10 years
- Approval
Approved by:
- Project Manager
- PMO Director
- Ministry Steering Committee
Approval Date: 20 December 2025
