One of these formulas solves for Estimate at Completion — an important metric for monitoring a project budget. Keep reading to learn why to always calculate Estimate at Completion and exactly what this formula can do.

What Is Estimate at Completion (EAC)?

Estimate at completion (EAC)  is a part of the earned value management (EVM) system. This term refers to the practice of re-estimating the total cost of the project during the project execution phase. In other words, EAC allows project management teams to forecast how much the project will cost at the time of completion based on its actual costs, which are likely different from the costs in the project budget made in the initiation or planning phase.

Once calculated, the EAC can then be compared to the originally projected budget to determine if the project is likely to be finished within budget based on current performance. 

Unlike other methods of cost estimation, an estimate at completion calculation considers actual performance at any given moment of the project execution phase  and recognizes that initial budget projections are likely not perfect. For this reason, it is often referred to as a “project forecasting tool  or method”

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To fully understand the role EAC plays in the earned value management system, we have to look at other parts of this system and how EAC is unique.

Because of the dynamic nature of EAC, there is no single formula to calculate the estimate at completion of a project, as you can use several formulas depending on how the project is progressing. But before we get into that, it’s important to define the variables that are used to calculate EAC.

Estimate at Completion (EAC) Definitions

The estimate at completion formula consists of variables and concepts that are part of the Earned Value Management system. But what exactly do these terms mean and how do you find them?

• Budget at Completion (BAC): Budget at Completion (BAC) refers to the entire budget required to complete a project. In order to find BAC, you must add all estimated costs and expenses. Generally, budgets are broken down categorically. BAC is the sum of all the categories.
• Cost Performance Index (CPI): Cost Performance Index (CPI) is a ratio representing how costs are being turned into actual work; how effectively is money being spent. This is found by dividing the earned value (EV) of work completed by the Actual Cost (AC) it took to perform.
• Schedule Performance Index (SPI): Similar to CPI, the Schedule Performance Index measures how efficiently time is being spent. SPI is calculated by dividing the Earned Value (EV) of work done by the Planned Value (PV).
• Estimate to Complete (ETC): ETC forecasts the expected cost to complete the remaining project work. It helps project teams determine how much more funding is needed, either by subtracting actual costs from the EAC or through a new bottom-up estimate.
• Actual Cost (AC): AC represents the total cost incurred for completed work up to a specific point in time. It is used in Earned Value Management to assess how much has been spent compared to the value of the work performed.
• Budget at Completion (BAC): BAC is the total budget originally approved for the entire project. It serves as the financial baseline and is used to measure cost performance and forecast deviations from planned expenditures throughout the project life cycle.
• Earned Value (EV): EV is the budgeted value of work actually completed at a given point in time. It quantifies progress in financial terms and is essential for calculating cost and schedule performance in Earned Value Management.
• Planned Value (PV): PV is the authorized budget assigned to scheduled work. It reflects how much of the budget should have been spent based on the project schedule and is used to evaluate whether the project is on track.

Additional Estimate at Completion Formulas

Estimates at completion can also be calculated in three other ways, and each of the variations is best for a certain situation.

This formula should be used when the difference between the estimated budget and actual costs will be different in the future than it is in the present:

Estimate at Completion = Actual Cost + (Budget at Completion – Earned Value)

This formula is the best choice when production has been steady and things are running smoothly. Using this formula helps confirm that a project is on track to stay within budget:

Estimate at Completion = Actual Cost + (Budget at Completion – Earned Value)

When it’s necessary to take project schedule and cost performance into account (how efficiently time and money are being used) to revise a budget, use this formula to find estimates at completion. As you can see, you first need to calculate the Schedule Performance Index and Cost Performance Index.

Estimate at Completion = Actual Cost + (Budget at Completion – Earned Value) / Schedule Performance Index + Cost Performance Index

How to Calculate Estimate at Completion: Estimate at Completion Formulas

Here are the formulas used to calculate the estimate at completion of a project. Each of them allows project management teams to estimate how much a project will cost at the end, but are slightly different to accommodate various scenarios.

1. EAC = BAC/CPI

We’re happy to report that the most commonly used estimate at completion formula is fairly simple! In order to calculate the estimate at completion (EAC), you must know the budget at completion (BAC) and the cost performance index (CPI). With this information, the calculation is as simple as dividing the two.

Below is what that estimate at completion formula looks like in more detail:

Estimate at Completion = Budget at Completion / Cost Performance Index

This formula assumes that the cost performance seen so far will continue throughout the rest of the project. It’s used when the project is stable and trends in cost efficiency are expected to remain consistent.

Because it directly factors in the Cost Performance Index (CPI), it’s best for projects with predictable spending patterns and no major disruptions. It allows teams to adjust expectations without re-estimating each task, making it ideal for consistent, ongoing performance evaluation.

2. EAC = AC + (BAC – EV)

This formula is the best choice when production has been steady and things are running smoothly. It assumes that past cost overruns or inefficiencies were one-time events, and the remaining work will be completed as originally budgeted. It’s most useful when early cost variances are not expected to continue and the original plan still holds for future work.

Below is what that estimate at completion formula looks like in more detail:

Estimate at Completion = Actual Cost + (Budget at Completion – Earned Value)

This formula does not adjust for ongoing performance trends, so it’s best used when there’s confidence that the baseline plan is still realistic. It’s a conservative forecast based on reverting to the initial budget.

3. EAC = AC + [(BAC – EV) / (CPI × SPI)]

This estimate at completion formula should be used when it’s necessary to take project schedule and cost performance into account (how efficiently time and money are being used) to revise a budget.

It adjusts for both cost and schedule performance, assuming that future work will be influenced by current inefficiencies in both areas. It’s especially valuable for troubled or complex projects where delays and overspending are occurring together.

Below is what that estimate at completion formula looks like in more detail:

Estimate at Completion = Actual Cost + [(Budget at Completion – Earned Value) / (Schedule Performance Index * Cost Performance Index)]

By incorporating both the Cost Performance Index (CPI) and the Schedule Performance Index (SPI), it produces a more comprehensive forecast. It’s best used when neither cost nor time trends can be ignored, and recovery requires simultaneous attention to both factors.

4. EAC = AC + Bottom-up ETC

This approach assumes that the original plan is no longer valid, and a new estimate must be built from the ground up. It’s used when significant changes in scope, unexpected challenges, or shifts in project direction occur.

Below is what that estimate at completion formula looks like in more detail:

Estimate at Completion = Actual Cost + Bottom-up Estimate to Complete

Instead of relying on performance indices, this method involves a detailed reassessment of remaining tasks and costs. It’s best for projects requiring a fresh financial outlook due to poor initial planning, changing requirements, or disrupted performance metrics that render previous estimates unusable.

Estimate at Completion Example

For this example, we’ll use the first Estimate to Complete formula variation. As a reminder, here’s what that equation looks like:

EAC = BAC / CPI

In this scenario, the Budget at Completion (BAC) is $50,000 and the current Cost Performance Index (CPI) is equal to 0.8. Therefore, we must divide $50,000 by 0.8.

EAC = $50,000 / 0.8

EAC = $62,500

This result indicates that at the current moment, the project is estimated to cost $62,500, which is $12,500 over the initial budget.

Estimate at Completion vs. Estimate to Complete

These two terms are often mixed up, because they both refer to estimates on some aspect of a project budget. Because they are so easily confused, it’s key to know the difference and when to calculate for which.

Estimate at completion (EAC) predicts total costs, while estimate to complete (ETC) predicts the money a project still needs. ETC is the forecast of all additional money required to complete a project. It does not account for money already spent.

Estimate at Completion vs. To Complete Performance Index (TCPI)

The term “to complete performance index” (TCPI) refers to how cost-efficient the rest of a project must be in order to complete the final deliverable. This is a subset of a cost performance index (CPI). A CPI shows how efficiency costs and resources are being used in the present.

When we solve for CPI, the answer will be less, greater or equal to one, depending on how costs compare to the amount of work completed.

If, for instance, CPI is less than one, changes need to be made in order to be more cost-efficient. When this is the case, you will solve for TCPI to find a numerical value representing how much this adjustment needs to be.

That formula looks like this:

TCPI = (Budget at Completion (BAC) – Earned Value (EV)) / (BAC – Actual Cost (AC))

Why Is it Important to Calculate the Estimate at Completion of a Project?

Even the most well-planned budgets aren’t always 100% accurate. Projects are prone to changes and unexpected circumstances, including increased or decreased expenses and costs.

Calculating EAC gives project managers the opportunity to track exactly how much a change will impact the total budget — in a dollar amount. Knowing this exact dollar amount makes for better, more informed decision-making.

When to Calculate the Estimate at Completion of a Project

Estimate at completion is a means of estimating how much a project will cost at the end of the line. But, in order to accurately calculate for EAC, you need to know the cost performance index (CPI). As such, EAC can only be calculated when a project is running.

The CPI is calculated at regular intervals during a project, as this number shows spending effectiveness. This makes it a good habit to calculate for EAC anytime the CPI changes.

Project Budget Template

Before you calculate EAC, you’ll need to create a thorough project budget. This free project budget template for Excel allows you to list all your project tasks and their related costs such as labor, material and equipment. The best part is that it automatically calculates the difference between planned and actual costs to let you know whether your project is over or under budget.

However, while this project management template is useful, it can’t compete with the features of a robust project management software like ProjectManager.

How ProjectManager Helps with Cost Estimating and Variance

When you’ve successfully calculated the Estimate at Completion, it’s time to put the results to use. In order to make the best estimates, you need to have the most current information. The ProjectManager dashboard updates in real-time, so there’s no chance of using old data to make important decisions for the future.

Use a wide range of filters to customize the dashboard view to your liking and hone in on the critical details. See costs, tasks, time spent and overall project health, all from one hub.

Let your dashboard do the calculations for you and easily compare things like planned v. actual costs, planned completion v. actual completion and more. That means there’s no need to get out the calculator or rely on third-party applications to see things like your EAC.

Related Content

• Project Estimation Techniques: A Quick Guide
• Time Estimation in Project Management: Tips & Techniques
• Calculating Estimate at Completion (EAC)
• Parametric Estimating In Project Management

When creating an estimate at completion for your project, you need the best tools to calculate cost estimations and variance. ProjectManager is a cloud-based project management software with dashboards and resource management features that give you control over your project costs. Try ProjectManager today for free!

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In fact, they can strengthen it. The key is spotting them and making adjustments to stay on the right path. One of the best ways to avoid cost overrun is by calculating cost variance.

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What Is Cost Variance in Project Management?

Cost variance (also referred to as CV) is the difference between project costs estimated during the planning phase and the actual costs. In other words, it’s how much actual costs vary from budgeted costs. Calculating cost variance is how project managers track expenses to see if a project is under or over budget.

These calculations are part of a technique called earned value management (EVM). In an EVM system, the goal of cost management is to establish whether a variance is positive, negative or zero.

When project managers have this earned value analysis information, they can make the necessary adjustments to stay on track. If a variance is extremely high (negative), changes need to be made. If there’s an extremely low-cost variance (positive) or zero variance, they can take it as a sign of effective cost management.

Positive Cost Variance vs. Negative Cost Variance

Cost variance (CV) is a key performance metric in project management that measures the difference between the budgeted cost of work performed (earned value) and the actual cost incurred. It helps project managers assess whether a project is under or over budget.

Positive cost variance indicates that the project is under budget. This happens when the earned value is greater than the actual cost. For example, if your project has earned $50,000 worth of work but you’ve only spent $45,000, your cost variance is +$5,000. A positive CV suggests efficient cost management and resource use.

Negative cost variance means the project is over budget. This occurs when the actual cost exceeds the earned value. For instance, if you’ve completed $40,000 worth of work but spent $45,000, your cost variance is -$5,000. A negative CV flags potential issues such as scope creep, underestimation, or misallocated resources, and usually requires corrective action.

Understanding and tracking cost variance is crucial for maintaining financial control and ensuring project profitability.

How to Calculate Cost Variance in Project Management

Cost variance is exactly how much a project is over or under budget. This is calculated using the cost variance formula.

Cost Variance Formula

In the earned value management (EVM) methodology used in project management, cost variance (CV) measures the difference between the value of work performed and the actual cost incurred.

It is calculated using the formula below, where EV stands for earned value and AC is actual cost. A positive CV indicates under budget; a negative CV signals cost overruns.

Cost Variance (CV) = Earned Value (EV) – Actual Cost (AC)

• Actual Cost (AC): The total cost incurred for work performed on a project up to a specific point. It includes all direct and indirect expenses, such as labor, materials, and equipment, regardless of the project’s progress.
• Earned Value (EV): The budgeted value of the work actually completed at a given point in time. It reflects project progress in monetary terms and is used to compare planned versus actual performance.

Cost Variance Calculation Methods

Cost variance calculation methods are techniques used to measure the difference between a project’s planned and actual costs at various points in time.

There are three main cost variance calculation methods, cumulative cost variance method, period-by-period cost variance method and variance at completion method.

These three methods apply the cost variance formula (CV = EV – AC) at different stages of the project.

Cumulative Cost Variance Method

The cumulative cost variance (CV) method calculates the difference between the earned value (EV) and actual cost (AC) of a project up to a specific point in time. It reflects the overall cost performance across the entire project duration to date.

Formula: CV = EV – AC

This method provides a high-level overview of whether the project is under or over budget, making it useful for ongoing budget tracking and trend analysis. It helps stakeholders assess long-term project performance rather than isolated cost issues.

Period-by-Period Cost Variance Method

The period-by-period cost variance method focuses on short time intervals—typically weekly or monthly—calculating the cost variance for each specific period.

Formula (per period): CV = EV (for the period) – AC (for the period)

This method allows project managers to pinpoint when cost deviations occur, offering a more detailed and immediate insight into spending issues. It’s ideal for identifying short-term trends or sudden spikes in costs that may not yet be reflected in cumulative data.

Variance at Completion (VAC) Method

Variance at completion (VAC) forecasts the expected cost variance at the end of the project. It compares the total project budget, known as the budget at completion (BAC), with the forecasted cost, or estimate at completion (EAC).

Formula: VAC = BAC – EAC

This method helps project managers anticipate whether they are likely to complete the project under or over budget, enabling better long-term financial planning and corrective action before project closure.

What Are the Main Causes of Cost Variance In Project Management?

Cost variance in project management refers to the difference between the estimated cost and the actual cost of a project. While small variances are expected, significant differences often signal deeper issues that can affect project success. Understanding the root causes of cost variance is essential for controlling budgets, managing expectations and delivering value.

Inaccurate Cost Estimates

Poor initial cost estimates can derail a project’s financial trajectory from the start. This usually occurs when estimates are based on incomplete data, guesswork, or overly optimistic assumptions. Without thorough research and expert input, budget baselines may not reflect the true scope or complexity of the work.

Scope Creep

When new features, tasks or deliverables are added to a project without corresponding budget adjustments, it leads to scope creep. This often results from unclear requirements or lack of change control processes. The more the scope expands, the more costs rise—often unexpectedly.

Schedule Delays

Delays in project timelines can significantly increase costs due to extended resource use, contract penalties or the need to accelerate later work phases. Time-sensitive costs like equipment rentals or staff salaries often become inflated when a project runs behind schedule.

Resource Cost Fluctuations

The price of labor, materials and subcontractor services can change due to market conditions, availability or external economic factors. If a budget doesn’t account for potential price shifts or inflation, it can cause substantial cost overruns.

Project Risks

Unexpected events such as regulatory changes, weather delays or technical issues can disrupt progress and incur additional costs. Without a robust risk management plan, projects may struggle to absorb the financial impact of such events.

Low Productivity or Resource Utilization Inefficiency

When teams aren’t operating efficiently—due to poor training, unclear direction or lack of coordination—project tasks take longer and require more resources. Inefficient resource usage drives up labor costs and affects overall cost performance.

Cost Variance Analysis Examples

To better understand the concept of cost variance analysis we have created an example in a couple of different industries. This should help to show how the process works in a real-life scenario.

Construction Cost Variance Analysis Example

This cost variance analysis example is for the construction industry. Here, the project is working on the foundation of an office building.

Project: Office Building Construction

Task: Foundation Work

• Planned Value (PV): $80,000
• Earned Value (EV): $75,000
• Actual Cost (AC): $90,000

CV = $75,000 – $90,000 = –$15,000

Analysis: The foundation work is $15,000 over budget. Although 75 percent of the work has been completed (EV), actual spending exceeded expectations due to unforeseen soil stabilization issues and higher-than-estimated concrete costs. This unfavorable variance highlights a need to revise cost estimates for future phases and assess vendor pricing accuracy.

Manufacturing Cost Variance Analysis Example

In this cost variance analysis example, we’re dealing with a manufacturing company. They have a run of steel frames that require welding and assembly.

Project: Production of 500 Steel Frames

Task: Welding and Assembly

• Planned Value (PV): $60,000
• Earned Value (EV): $55,000
• Actual Cost (AC): $50,000

Cost Variance (CV) = EV – AC
CV = $55,000 – $50,000 = +$5,000

Analysis: The welding and assembly task is $5,000 under budget. Although only 92 percent of the planned work has been completed, the actual cost came in lower due to higher labor efficiency and a bulk discount on welding supplies. This favorable variance suggests strong production performance and potential to reallocate savings to later stages.

Understanding Project Costs

All projects cost money, regardless of their size, scope or deliverables. We’ve all heard “there’s no such thing as a free lunch.” The same goes for projects – there’s no such thing as a project without costs. These costs come in many different forms, from the cost of materials to simply the cost of doing business (rent, salaries, etc.). It’s the project manager’s job to take all of these costs into account and create a flexible budget.

Project costs, no matter the type, need to be properly managed and tracked throughout the life cycle of a project. If project managers don’t keep a close eye on the project, it can be detrimental to the project’s success. Plus, having real-time data access is essential to helping project managers make adjustments.

Project management software is foundational in planning and tracking project costs. ProjectManager is award-winning project management software that has the resource-focused tools you need to compare your planned and actual costs in real time. Use our in-depth Gantt chart to set a baseline once you’ve scheduled your tasks, costs and resources. Use it to understand your project costs at a glance and make adjustments as needed in real time.

Different Types of Project Costs

To fully understand project cost variance, it’s helpful to be familiar with the main types of project costs. Take a look at the four you’re most likely to see. Most projects have all four, and each can contribute to overall cost variance:

• Direct Costs: Think of direct costs as costs that go straight to the project to achieve deliverables. A helpful example of a direct cost is the cost of the material needed to build something. The cost of these materials is going toward creating an end product.
• Indirect Costs: Indirect costs, on the other hand, go toward funding “behind the scenes” expenses incurred throughout the life of a project. They’re also known as overhead costs. For example, the cost of renting an office space is a common expense fixed overhead. This expense must be paid to complete the project, but it also goes toward supporting other projects.
• Fixed Costs: Fixed costs are expenses with set prices that aren’t subject to any kind of change. These are dependable costs that will not fluctuate and potentially throw off a budget. Both direct and indirect costs can also be fixed costs (or variable costs). A fixed cost, for example, might look like the flat fee a contractor charges for their services.
• Variable Costs: Variable costs, on the other hand, are not as predictable. For example, the cost of equipment rental may go up or down depending on the vendor, the demand or how long the equipment is needed.
• Overhead Costs: Overhead costs are indirect expenses required to run a project or business, such as utilities, rent, and administrative salaries. They support operations but aren’t tied to specific deliverables or tasks.

Related: Free Project Budget Template for Excel

Other Types of Cost Variance In Project Management and Cost Accounting

Besides the cost variance formula that’s used in earned value management, there are other types of cost variance that are used in project management and cost accounting, especially in manufacturing and construction projects.

Material Cost Variance (MCV)

Material cost variance (MCV) is a key metric in cost accounting and project management used to measure the difference between the expected cost of materials (based on standard costs) and the actual cost incurred.

MCV is most useful in manufacturing and construction projects where material expenses make up a significant portion of the total cost. It helps managers identify pricing issues, supplier performance problems, procurement inefficiencies or market-driven cost changes.

Material Cost Variance Formula

MCV = (SQ × SP) – (AQ × AP)

• SQ= Standard Quantity
• SP= Standard Price
• AQ= Actual Quantity
• AP= Actual Price

Labor Cost Variance (LCV)

Labor cost variance (LCV) is a project and cost management metric that measures the difference between the standard cost of labor and the actual labor cost incurred during a project or production cycle.

LCV is especially important in labor-intensive industries such as construction, manufacturing, and service-based projects. It is used to monitor efficiency, wage rate fluctuations and workforce productivity.

Labor Cost Variance Formula

LCV = (SH × SR) – (AH × AR)

• SH= Standard Hours
• SR= Standard Rate
• AH= Actual Hours
• AR= Actual Rate

Overhead Cost Variance

Overhead cost variance is a financial metric used to assess the difference between the budgeted (or standard) overhead costs and the actual overhead costs incurred during a project or production period.

This metric is particularly useful in environments with fixed budgets and recurring indirect costs, such as in manufacturing plants or large-scale infrastructure projects. Overhead cost variance helps managers understand how well they are controlling indirect spending and can highlight inefficiencies like underutilized facilities, inaccurate cost allocation methods, or unexpected increases in overhead expenses.

Variable Overhead Variance Formula

VOHV = (SH × SR) – (AH × AR)

• SH= Standard Hours
• SR= Standard Rate
• AH= Actual Hours
• AR= Actual Rate

Fixed Overhead Variance Formula

FOHV = Budgeted Fixed Overhead – Actual Fixed Overhead

Other Cost Variance Analysis Formulas Used in EVM

While the formula explained above is the main one used to calculate cost variance in project management, there are other earned value management (EVM) formulas that can help with cost variance analysis.

Cost Performance Index Formula

Cost Performance Index (CPI) = Earned Value (EV) / Actual Cost (AC)

A cost performance index (CPI) is a metric used to judge how well resources are being used in a project. When solving for a CPI, the value will be one of two things:

Less than or equal to 1 (resources are not being used efficiently)
Greater than or equal to 1 (resources are being used efficiently)

To solve for CPI, you must divide the earned value by actual costs.

To Complete Cost Performance Index Formula

To Complete Cost Performance Index (TCPI) = (Total Budget – EV) / (Total Budget – AC)

Solving for a complete cost performance index (TCPI) is extremely helpful, especially if you’re experiencing a high (negative) project cost variance. A TCPI is an index that shows how resources must be used for the rest of a project to come in under or on budget.

To find your TCPI, begin by subtracting your earned value from your total budget. Then, subtract your actual cost from the total budget. Last, divide the first quotient by the second quotient.

Free Cost Benefit Analysis Template

Before cost variance comes into play, you need to determine if the project expenses are justified. Download our free cost-benefit analysis template for Excel to quickly crunch the numbers and determine if the project makes sense from a cost perspective. Access to this data makes it easy for project managers to determine if a project will be successful.

How ProjectManager Helps Calculate Cost Variance in Real Time

Throughout the life of a project, you’ll want to have each of these cost variance formulas at your disposal. Thankfully, there are cost management tools that make keeping your eye on variances effortless so that you don’t have to manually crunch the numbers.

ProjectManager fills formulas with the correct values automatically and prevents any human error that can lead to major budgeting mistakes. Factors like total budget, actual costs, earned values and more are updated in real-time so that you’re always seeing the most current data.

Create and manage project budgets, as well as see how actual costs compare to planned costs on the project dashboard. The ProjectManager project dashboard updates automatically, so you’re always looking at the most current figures and make the smartest budgeting decisions. This makes all the difference between spotting cost variances and missing crucial details. Keep your eye on cost baselines, as well as spending and where projects are at in terms of budget.

Need to share this information with stakeholders? Create a budget report in only a few clicks to keep the team up to speed and making the best decisions together. Having this information at your fingertips and being able to share it is the difference between projects staying on budget and going over budget, which can result in cost overrun and total failure.

Calculating cost variance requires project management software robust enough to calculate and organize your data in real time. ProjectManager is online project management software that keeps your project’s costs within budget. Try it today with this free 30-day trial.

The post How to Calculate Cost Variance for a Project (Formula Included) appeared first on ProjectManager.

So, how can changes be used to your advantage in project management? We create a system to guide these changes. This system prevents confusion and disorganization which can sink and operate, and it all begins with a change request.

What Is a Change Request?

Change requests act as these formal documents and are a core component of a change management plan. These documents outline modifications to some aspect of the project or organization — usually at a high level, such as a project deliverable or organizational operations.

The requests for change can come from within or outside the organization, and while requested changes can vary wildly, the process for creating them is the same. This continuity simplifies the process of creating, submitting, monitoring and approving (or denying) them.

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Change Request Form

Use this free Change Request Template for Word to manage your projects better.

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What Is the Purpose of a Change Form?

In any project or organization, there is the potential that processes or tasks will need to be changed. Change requests exist to officially document details about those aspects that need to be altered. Their purpose is to request a modification and control this change.

These modifications can be necessary when high-level goals and objectives and/or project deliverables change or are added on to. For example, a client may want to change the deliverables of a project, a company may want to expand its mission, an organization may want to improve communication or internal operations. The list goes on. Regardless of what the change is, change requests document the proposed modification.

These formal requests list all pertinent information and are then passed along to an individual stakeholder (or a board or comity of individuals) for approval. Change requests summarize everything they need to know and simplify how the change management process will progress.

Project management software makes it easier to manage change for your projects and wider organization. With ProjectManager, incorporate change into your project schedules with robust Gantt charts with dependencies, baseline tracking and version control. Leverage built-in risk management features and collaborate on tasks online with your team in List or Board views. It’s software designed specifically with project management in mind. Try ProjectManager today for free.

What Should Be Included in a Change Request Form?

No matter the kind of request for change is made, there are a few bases you should be sure to cover. Start with these core components and build out the rest of your change requests around them.

• Request Title: A brief, descriptive title that summarizes the nature of the change being requested.
• Request Number / ID: A unique identifier assigned to the change request for tracking and reference.
• Date of Request: The date on which the change request is formally submitted.
• Requestor Information: The name, role and contact details of the person initiating the change request.
• Description of Change: A detailed explanation of the proposed change, including what is being changed and why.
• Reason for Change: A justification for the change, explaining the problem, opportunity or requirement prompting it.
• Impact Analysis: An evaluation of how the change will affect the project’s scope, schedule, budget, resources and quality.
• Resource Requirements: A summary of additional personnel, tools, time or budget needed to implement the change.
• Potential Risks: Any known risks or uncertainties that could arise as a result of implementing the change.
• Proposed Solution or Alternative: The recommended approach to implement the change, including any alternative options.
• Affected Documents/Deliverables: A list of project documents, components or deliverables that will be impacted by the change.
• Priority Level: The urgency or importance of the change, typically categorized as low, medium or high.
• Approval Section: A space for reviewers or decision-makers to record their names, roles and signatures as part of the approval process.
• Decision: The final determination (e.g., approved, rejected, deferred) regarding the change request.
• Implementation Plan: A high-level plan describing how the change will be executed, including steps, timeline and responsibilities.
• Comments: An optional section for additional notes, clarifications, or supporting information related to the change.

Depending on the type of change or the organization or project, you may wish to include additional details. This is completely fine, but you’ll want to keep these additional sections short and sweet and be sure the format of each request is as consistent as possible.

Change Request Form Example

To better understand what a change request is, here is an example. The section below outlines the essential details of the change request, including who submitted it, when and what the change entails. In the example, the request is to add e-commerce functionality to a website redesign project, with a high priority due to shifting business goals.

Here, the broader implications of the change are evaluated, such as the effect on project scope, budget, resources, risks and schedule. The proposed change adds complexity, requires additional staff and time, and shifts the deadline by several weeks—factors critical to project planning.

The final section captures the official decision regarding the change, with space for comments and approval signatures. In the example, the change is accepted with a note on privacy considerations and the necessary stakeholders sign off to authorize implementation.

Change Request Form Template

Get started making change requests at your organization with this template. Our free change request form template for Word will help you describe the change, evaluate the impact of the change, establish a sign-off process and more. It’s the ideal way to integrate change management into your projects and business. Download yours today.

What Is Change Request Management?

Change request management is the structured process of identifying, evaluating and implementing changes within a project or organization. It ensures that any proposed modifications—whether to scope, schedule, budget, resources or deliverables—are carefully reviewed and approved before execution. The goal is to maintain project control and alignment with objectives while minimizing disruptions and risks.

This process typically involves submitting a formal change request, conducting impact assessments, involving key stakeholders and documenting decisions. Change request management is essential in dynamic project environments where new information, shifting priorities, or unforeseen issues can necessitate adjustments. By following a standardized approach, teams can make informed decisions, ensure transparency and maintain accountability throughout the project lifecycle.

Free Related Change Management Templates

The change request form is only one of over 100 free project management templates for Excel and Word that cover all aspects of managing projects across multiple industries. Here are just a few that relate to change management.

Change Management Plan Template

Download this free change management plan template for Word to guide organizations through the process of managing change effectively. It outlines how changes—whether organizational, technical, procedural or strategic—will be identified, assessed, approved, implemented and monitored. This template provides a standardized format to ensure consistency, clarity and alignment across all change initiatives.

Change Impact Assessment Template

Use this free change impact assessment template for Excel to evaluate how a proposed change will affect various aspects of a project, process, organization or system. It helps decision-makers understand the scope and implications of a change before implementation, enabling better planning, risk mitigation and communication with stakeholders.

Change Log Template

This free change log template for Excel is used to track and manage changes throughout the lifecycle of a project. It provides a centralized record of all requested, approved, deferred or rejected changes, including essential details like the nature of the change, when it was made, who initiated it and its impact on project scope, schedule and cost.

Types of Change Requests

Change requests can be sorted into different categories, depending on the objective of the change. Here are the four key types of change requests to be aware of. Each of these four can apply to both projects and organizations as a whole.

• Normal Change: A normal change request addresses a significant alteration to operations, existing systems, infrastructure, etc. This type isn’t uncommon, but it does imply substantial, far-reaching changes need to be made. And, as you can imagine, normal change requests often result in additional ones.
• Standard Change: A standard change request proposes a low-risk change that occurs often. As we’ve discussed, many changes are perfectly natural over the course of a project or in an organization. These changes can be thought of as evolution. They are proposals outlining what needs to be modified, but the modification itself will follow a preexisting system.
• Major Change: A major change request proposes a significant change that will require substantial financing. Major changes pose a high risk, but they can also reap high rewards. These changes don’t occur often, and if they’re handled poorly, they can do serious damage. That being said, they’re necessary to make extreme modifications.
• Emergency Change: An emergency change request is a high-priority proposal for immediate change. This type is generally the result of a mistake or something not going as planned and can be used to prevent these unexpected circumstances from wreaking havoc.

How to Establish a Change Request Process

It’s important to have a concrete system of processing requests in place. This creates a set of steps anyone can follow and cuts down on errors. This will look different depending on the industry, organization or project, but there are some universal points they need to hit. Here are a few to focus on:

1. Create a Change Request Form for Your Organization

Change requests can impact many aspects of a project plan or even the entire organization. But, no matter what kind of requests are submitted, they should all contain the same components and answer the same questions. For this reason it is highly advisable to use a change request form for any change requests that might be required throughout the organization. This consistency in formatting makes for better records and more thorough reporting.

Because consistency is so important, many organizations choose to use templates when creating one. These templates make it simple to find the information you’re looking for because you’re already familiar with the formatting. A template also ensures no details are left out.

2. Assemble a Change Control Board

Assembling a Change Control Board (CCB) involves selecting a group of stakeholders who are responsible for reviewing, evaluating, approving or rejecting change requests in a structured and consistent way. A well-formed CCB ensures that proposed changes align with project goals, stakeholder interests and organizational priorities.

Typically, the change control board includes the following.

• Project Manager: Chairs the board, facilitates discussions and ensures the change process aligns with project goals and timelines.
• Project Sponsor or Executive Stakeholder: Provides strategic oversight and ensures changes align with business objectives and funding constraints.
• Product Owner or Client Representative: Represents the end-user perspective and assesses how changes impact functionality, value and usability.
• Functional Leads or Department Heads: Offer input on how proposed changes affect operations, staffing and departmental responsibilities.
• Quality Assurance Lead: Evaluates changes for their impact on deliverable quality, testing protocols and compliance.
• Risk Manager: Analyzes potential risks introduced by the change and recommends mitigation strategies.
• Technical Lead or Systems Architect: Assesses feasibility, resource implications and technical impact of the proposed change.
• Change Manager (if applicable): Oversees the change process and ensures adherence to organizational change management frameworks.

3. Establish a Chain of Communication Between Requestors and the Change Control Board

Submitting a request to the change control board is not the end of the process. In fact, submitting often only starts a longer conversation. Regardless of whether a change request is approved or denied, there will likely be some back and forth between the person submitting the request and the person responsible for reviewing it.

Because change requests do often start these conversations, it’s important to establish exactly how these “edits” will be discussed or questions will be asked. Each party must know who to speak to and how to voice their questions, concerns, criticism, etc. When there is a set communication plan in place, this cuts down on conflict and improves efficiency.

4. Create a Change Log to Register Change Requests

This step involves documenting all submitted change requests in a centralized change log. The change log acts as an official record that tracks each request from submission through resolution. It captures key details such as the request ID, date submitted, description, requestor name, status, priority and decision outcome.

Maintaining a change log ensures transparency, accountability, and traceability throughout the change management process. It helps project managers and stakeholders monitor progress, avoid duplication and evaluate the overall impact of changes on scope, budget, timeline and resources. An up-to-date change log is essential for successful project governance and communication.

5. Assess the Potential Impact of Change Requests

Before approving a change request, it’s essential to evaluate how the proposed change will affect various aspects of the project. A structured impact assessment helps project teams make informed decisions, avoid unintended consequences and maintain alignment with project goals. Below are the core areas to assess.

• Scope: Determine whether the change expands or reduces the project’s deliverables or objectives. Will new tasks be added? Are existing requirements being modified?
• Schedule: Evaluate how the change will affect the timeline. Will it delay milestones or the final delivery date? Does it compress time for other tasks?
• Cost: Assess the financial implications. Will additional funding be needed? Are there potential cost savings or increases?
• Quality: Consider how the change may impact the quality of deliverables. Will it compromise standards, or does it aim to improve outcomes?
• Resources: Analyze whether the change requires more personnel, equipment, or materials. Is current capacity sufficient, or are additional resources needed?
• Risks: Identify new risks introduced by the change and determine how they affect the project’s overall risk profile. Are mitigation strategies required?

6. Approve, Deny or Defer the Change Request

When evaluating a change request, there are typically three decisions a change control board (CCB) or project decision-makers can make.

• Approve: If the change request aligns with project goals, provides value and has acceptable impacts on scope, schedule, cost and resources, it should be approved. Approval indicates that the change will be implemented according to the proposed plan and reflected in updated project documentation.
• Deny: A change request is denied if it introduces unacceptable risks, costs or misalignment with project objectives. This decision halts further consideration unless the request is revised and resubmitted.
• Defer: Deferring a change request means postponing the decision. This often happens when more information is needed or when the project isn’t at the right phase to accommodate the change.

7. Implement the Change Request

When approved, it’s time to execute the resulting changes. This usually falls to many different individuals and can even involve different departments. Perhaps the most important part of establishing a change management process is deciding what will happen after a request is approved.

Although the changes being approved can vary widely, the steps after approval should look the same. This includes holding a meeting and completing necessary forms such as a change order. The key is having a system in place to take approved requests from documents and turn them into reality.

8. Conduct a Post-Implementation Review After Executing Change Request

A post-implementation review (PIR) after executing a change request assesses whether the change met its objectives, its impact on the project and lessons learned. For instance, in a project where a new user feedback feature was integrated into a website, the PIR evaluates whether the feature improved user engagement and provided valuable insights. Feedback from stakeholders, including product owners and support teams, confirmed the success of the change.

The review also looks at the impact across various areas like scope, schedule, cost, quality, resources and risk, all of which were successfully managed. Key lessons learned include the importance of early stakeholder input and the smooth collaboration between teams. Recommendations for the future might include continued monitoring of user engagement trends and exploring additional interactive features for the site. This review ensures that the change request was not only successfully executed but also provides valuable insights for continuous improvement.

How ProjectManager Helps Manage Changes in Your Project

When creating and submitting change requests, it’s important to have the proper documentation tools. Throughout the course of a project, you will need to organize and store an array of documents so that everything is easy for anyone to find and nothing is lost. ProjectManager allows you to upload all the documents you need to your project, with unlimited file space.

And if you need to point out a specific detail on a change request, simply leave a comment in the document and tag the team member(s) you want to show. This eliminates the need to email PDFs. back and forth and puts all your correspondences in one space.

Keeping all of your change requests in one location also makes it easy to execute the changes themselves. Because these requests live in the same space as your project plan, schedule, dashboard, task management tools and more, you can make adjustments with only a few clicks and get to work immediately.

Related Change Management Content

• Free Change Management Templates for Excel and Word
• How to Make a Change Management Plan (Example & Template Included)
• Change Request: How to Submit, Manage and Execute

ProjectManager is a cloud-based software that manages changes to your project with features that guide you through every step. Identify what needs to change, plan the change and then track its progress all with the same tool. Assume total control of project changes by trying ProjectManager for free today.

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What Is a Cost-Plus Contract?

A cost-plus contract is a construction agreement between an owner and a contractor, in which the project owner reimburses the contractor for all incurred costs and pays an additional fee, which corresponds to the profit the contractor makes for executing the project.

This means the owner is not agreeing to a set budget for things like materials and labor, but rather, agreeing to pay whatever it takes to get the job done. Additionally, the contractor is guaranteed a set profit in the form of a flat fee or a percentage.

To execute a cost-plus contract project successfully you’ll need a robust project management software like ProjectManager. With ProjectManager you can create project schedules, allocate resources, track costs and monitor progress in real time. Using its project management features you can keep projects and track and ensure they’re delivered on time and on budget. Get started for free today.

At first, this can sound like a precarious contract administration situation for both parties. Employers are trusting contractors to use good judgment and contractors are trusting employers to reimburse them. Despite this, there are many situations in which a cost-plus contract is the best fit. Construction projects, for one, largely use them because owners are hiring experts to build something outside of their capabilities.

When to Use a Cost-Plus Contract

There are various types of construction contracts, such as fixed-price contracts, cost-reimbursement contracts and time and materials contracts, among others.

Each of these types of contracts has benefits and disadvantages depending on the particular characteristics of a construction project, so it’s important to understand when it’s best to use a cost-plus contract.

Here are some of the scenarios in which a cost-plus contract is ideal for both the project owner and general contractor:

• Cost-plus contracts are the best choice when quality is more important for the project owner than time spent or costs.
• Ideal for complex projects where the project scope is uncertain or likely to change over time.
• Best for owners that wish to track project costs such as labor, materials, equipment or any other resources. This detailed cost-tracking information can be used for later projects.
• Perfect for high-risk projects where contractors don’t want to risk their profitability with a fixed-price contract.

What Should Be Included in a Cost-Plus Contract?

A cost-plus outlines how both direct and indirect costs will be covered and how they will be reimbursed to the contractor. But these costs only make up a portion of the agreement. This type of contract also includes an additional, predetermined amount to be paid to the contractor on top of expenses.

This additional amount can be a flat fee, a fixed rate (determined by the cost of labor, supplies, etc.) or a combination of the two. For example, a contractor may stipulate that the employer pays them a percentage of labor costs, on top of being compensated for the cost of labor itself.

Parties Involved

Identifies the client and contractor, establishing their roles in the construction project. Clear identification helps define responsibilities and ensures accountability. It also establishes the foundation for communication, compliance and legal enforcement throughout the agreement.

Project Description

Summarizes the construction project, detailing objectives, location and general scope. This overview aligns expectations between the parties and provides context for cost tracking and performance evaluation. As a result, all parties understand the project’s intent.

Scope of Work

Outlines specific construction tasks, deliverables and exclusions. It prevents misunderstandings by defining what is included in the project and what is not. In return, the scope of work allows for accurate cost allocation and helps the contractor and client stay on the same page.

Cost Reimbursement Terms

Details how construction costs are categorized and reimbursed, such as direct costs for materials and labor, indirect costs for overhead and contractor fees. Transparency in cost reimbursement ensures mutual trust and avoids disputes.

Payment Terms

Specifies how and when payments will be made for construction costs, including invoice submission, approval processes and payment schedules. It maintains cash flow for the contractor and ensures the client stays informed about expenditures.

Cost Limits

Establishes a maximum budget or not-to-exceed clause to control project spending. It provides flexibility while safeguarding the client from unanticipated expenses, requiring approval for significant cost changes.

Documentation Requirements

Lists records contractors must provide, such as receipts, invoices, and time logs. These documents ensure costs are legitimate and align with the contract, providing transparency and accountability in project finances.

Change Order Process

Defines how scope changes or unforeseen construction adjustments are managed. This ensures costs and timelines are updated formally which helps prevent delays or disputes over unauthorized changes.

Termination Clause

Sets the terms for ending the contract, including reasons like non-performance or unforeseen project issues. When there are clear termination terms, it protects both parties by minimizing financial and legal risks.

Dispute Resolution

These include methods like arbitration or mediation for resolving conflicts. Addressing potential disputes constructively minimizes delays and costly legal battles to ensure the project is completed smoothly.

Insurance and Liability

Specifies required insurance coverage and liability allocation to protect both client and contractor. Proper insurance mitigates risks related to accidents, damages or unforeseen events during construction.

Governing Law

Identifies the legal jurisdiction for resolving disputes and interpreting the contract. Establishing governing law ensures clarity in enforcement and adherence to local regulations throughout the construction project.

Cost-plus contracts are most successful when they’re specific, and there’s no such thing as too much detail. The most well-written contracts also outline things like how expenses should be documented by contractors and how any disagreements between the contractor and employer should be handled. These details — even if they’re ultimately not needed — can save the project.

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Cost Plus Contract Example

Use this free Cost Plus Contract Example for Word to manage your projects better.

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Cost-Plus Contract Example

To better illustrate what a cost-plus contract should look like, here’s a cost-plus contract example you can download for free. It contains the elements that we’ve outlined above.

Imagine a scenario where an individual needs to hire a contractor to build a custom single-family home. In this case, the general contractor can execute all of the scope of work without needing to hire any subcontractors.

Types of Cost-Plus Contracts

A cost-plus contract covers the costs of materials, labor, equipment, etc. plus a base fee or a percentage of overall costs. But how are these additional fees and rates determined? Here are four of the most common methods:

Cost-Plus Incentive Fee

A cost-plus incentive fee variation includes an incentive fee awarded to the contractor for a job well done. The specific terms of this incentive should be clearly stated in the contract.

Cost-Plus Award Fee

A cost-plus award fee variation includes built-in fees specifically stated in the contract. Unlike a cost-plus incentive fee contract, these fees are awarded for meeting specific criteria or deadlines. These fees can also be charged to contractors or deducted from their earnings.

Cost-Plus Fixed Rate

Cost-plus contracts cover both direct and indirect costs. One of these direct costs is labor. A cost-plus fixed-rate fee sets a fixed rate for the labor. This variation is often seen when contractors are hired for a very specialized task and can accurately estimate labor costs.

Cost-Plus Fixed Fee

A cost-plus fixed-fee variation also accounts for direct and indirect costs, but it also includes a flat fee that is determined before the contract is finalized.

Advantages of a Cost-Plus Contract

Cost-plus contracts are a favorite among contractors, but they’re just as beneficial to employers, as well. The old saying is true: no risk, no reward. And the rewards of using one can be great.

• They shift the focus from quantity to quality: Because contractors are not confined to a set budget with a cost-plus contract, they’re much less likely to cut corners in order to get the work done. Contractors know their expenses will be covered and are far more likely to choose the best materials and people for the job.
• They mean expenses go down with prices: While a cost-plus contract might seem like a big risk (employers agreeing to cover all expenses) this agreement ensures that employers will be charged fairly. If the price of a certain material goes down, they will pay the new lower amount. Pricing changes all the time, and this way there’s no risk of paying more than something is worth.
• They are more flexible than other types of contracts: Because cost-plus contracts mean employers are committing to paying contractors for direct and indirect expenses, contractors have more freedom to hire experts, choose the best materials and take enough time to get the work done right. This is especially important in construction projects, where cutting corners can harm the longevity of the finished product.

Disadvantages of a Cost-Plus Contract

For as many advantages as there are to using a cost-plus contract, there are a few disadvantages. When we’re aware of these “danger zones” they’re easier to avoid.

• They require a high level of trust: Cost-plus contracts require a large degree of trust from both the employer and the contractor. Employers are trusting contractors to make smart spending decisions and choose fairly priced options. On the other side of the coin, contractors are trusting employers to reimburse them for these expenses. Cost-plus contracts are a popular option when employers and contractors have a positive history together and/or the contractor has worked successfully with other employers under this type of contract.
• They make budget estimates difficult: Cost-plus contracts are best suited for projects with flexible budgets. As you can imagine, the cost of supplies and materials is constantly fluctuating. This means contractors might have to pay more for something than they initially anticipated in order to do the job well. This isn’t to say projects cannot have any type of budget, but there should be some “wiggle room”.
• They require thorough documentation: Without the proper documentation of costs and expenses, it’s impossible for employers to reimburse contractors accurately. This can create distrust and conflicts down the road, not to mention confusion. If records are kept and organized correctly, this isn’t a problem, but it is a common pitfall to be aware of.

How ProjectManager Helps With Cost-Plus Contracts

ProjectManager is award-winning software that allows you to keep all your important project documents in one location with unlimited file storage. This includes your cost-plus contract. Odds are, you’ll want to refer back to this document at some point, and you need to know exactly where to find it.

With ProjectManager, core documents like these live in the same place as your Gantt chart, along with other powerful features used to manage projects. This means no more jumping back and forth between pdfs. and your project management software.

If you need to point out certain details of the contract to team members, simply tag them in a comment and keep the conversation going. No more emailing documents back and forth and retracing your steps through messy email chains. Now, your discussions about documents like contracts are attached to the documents themselves.

ProjectManager is a cloud-based project management software that organizes tasks, teams and projects for greater productivity. Plan, monitor and report on your construction project while giving your crew the collaborative tools they need to work better together whether on the job or off-site. Join the tens of thousands of teams already using our software to boost efficiencies and take this free 30-day trial today.

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What Is Cost Control?

Cost control is the process of estimating, budgeting, tracking and reporting on project or business costs in order to keep costs within budgets to ensure profitability and maximize financial benefits. To make accurate project or business budgets, all expenses must be monitored, and spending controlled, to accommodate for any changes.

Predicting risks is another key factor in cost control. When you accurately analyze risks before they happen, you can modify the project budget before any issue occurs. This decreases the likelihood of exceeding the budget. For example, construction projects are especially prone to going over budget, affecting their profitability or even risking their completion or timely delivery, but proper cost control prevents this from happening and provides information to make future predictions.

Project cost control begins with monitoring and tracking changes to expenses. These changes are called variations, and they can be either “favorable” or “unfavorable.” These variations can be used to make more accurate predictions in the future.

Cost Control Process

We’ve broken down the steps for cost control in business and project management.

1. Cost Estimation

The goal of cost estimation is to estimate the costs related to the project or business activity. Achieve this by identifying the potential costs, including direct costs like labor and materials in addition to indirect costs like overhead and administrative costs. You can use cost estimating techniques in addition to historical data to inform cost estimation.

2. Budgeting

In the budgeting step, develop a cost baseline that will act as the approved budget. The baseline will be used as a comparison against the actual project costs that come to fruition. To accomplish this, use various budgeting methods such as fixed, flexible or zero-based to allocate estimated costs to various project phases, activities or components. Financial project management software can also be used.

3. Cost Tracking and Variance Analysis

Cost tracking is a critical part of cost control as it helps project management or business management teams diagnose any cost variances that can affect their budget. These changes are called variations, and they can be either “favorable” or “unfavorable.” These variations can be used to make more accurate predictions in the future. The most commonly used metrics to monitor costs are cost variance, budget variance and cost performance index.

4. Corrective Actions

Corrective actions consist of the steps needed to bring the costs on track if there are any identified deviations such as a needed cost reduction. It relies on the change control process and forecasting to implement changes; these may include negotiating with various suppliers, adjusting project timelines or adjusting resource allocations.

5. Cost Performance Reporting

Cost performance reporting is an integral step to ensuring all stakeholders are informed of cost performance. Reporting and overall communication can offer regular reports on cost status while highlighting variances and actions taken. It’s important to use financial reports, dashboards and project updates to communicate both good and bad news to help avoid surprises.

6. Cost Closeout

During the cost closeout phase, ensure that all costs are finalized and the budget is reconciled. Here, you’ll want to review all expenditures, make any outstanding payments and ensure that invoices and contracts are closed. Use various tools such as financial auditing and final project reports to oversee this data. When everything is finalized, perform a post-project cost analysis so this data can be used to inform future projects.

Cost Control Methods and Techniques for Project and Business Management

Below are some various cost control methods and techniques that will benefit individual projects and businesses as a whole.

Cost-Benefit Analysis (CBA)

A CBA helps determine if a project or individual activity is worth pursuing based on the predicted return on investment. It accomplishes this by comparing the benefits of a decision or investment against the costs it will take to accomplish it. A cost-benefit analysis is used in both business and project management to help determine financial viability.

Activity-Based Costing

In activity-based costing (ABC), overhead and indirect costs are allocated to specific activities based on the volume of resources they consume. ABC helps paint a more accurate picture of where various costs are coming from by tying them to specific activities. This method is commonly used in business management to improve the accuracy of costing and to help identify inefficiencies.

Cash Flow Management

Cash flow management helps monitor and optimize the flow of cash in and out of a project or business. It helps ensure there is enough liquidity to meet its obligations regarding operational or project costs. These insights into financial health help improve strategic planning and investment decisions and can avoid liquidity issues.

Value Engineering

Value engineering is a specific method to improve a project’s value by either reducing costs or enhancing function. Used in both project and business management, value engineering is especially useful in construction and product development. The goal of value engineering is to strike an ideal balance between cost, quality and performance.

Earned Value Management

Earned value management (EVM) is a combination of scope, schedule and cost measurements to determine how well a project is performing. It helps track progress and compares the actual costs to planned costs and earned value. Earned value refers to the value of the work that was actually completed. EVM is typically used in project management to better measure cost performance.

What Is Expense Control?

Expense control is the process of making direct changes to spending. Ideally, these changes are informed by cost control data. Where cost control focuses on both the big picture and the smaller details, expense control makes immediate changes to spending habits in order to keep projects on track.

To track and control expenses, they must be identified and sorted into one of two categories: direct expenses and indirect expenses.

Direct Expenses

Direct expenses go directly toward a project’s tangible needs. Three of the most common examples of direct expense are materials, labor and equipment. These expenses will be specific to the project and “create” something tangible. Our free estimate template can help you predict and manage your direct expenses.

Indirect Expenses

Indirect expenses are costs that are constantly accumulating in the background. A few common examples of indirect expenses are employee salaries, employee benefits and office/facility rental. Controlling indirect expenses can be the difference between project success and project failure.

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Project Dashboard Template

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Seven Tips for Better Cost Control

All projects have risks and, more likely than not, experience changes. That doesn’t mean they have to go over budget. These best practices for cost control set your process up for success:

1. Define Important KPIs

For each task or process, a project manager should decide on key performance indicators. These KPIs are predetermined metrics a team establishes before beginning a project, and are referred to throughout the project to check progress.

2. Anticipate Inflation

The cost of goods and services fluctuates depending on market factors. This can result in increased expenses. These price changes necessitate adjustments to budgets and spending. In terms of cost control, you must take these changes into account when preparing for risks and variances.

3. Create Contingency Plans

No matter how well a project is planned, there is still a chance something will go awry. You need to anticipate these financial risks and create strategies for adapting to them without incurring unfavorable variances. Think of these contingencies as backup plans. The more you can imagine the unexpected, the more prepared you are for the worst-case scenario.

4. Track Expenses in Real Time

A crucial aspect of cost control is tracking and documenting expenses. This is the only way to spot variances and correct them going forward. When you track expenses in real-time, you can spot variances and make the appropriate changes. In this way, even unfavorable variances can inform how you control costs for the remainder of the project.

5. Collect Data Regularly

Consistency is the name of the game. When the project appears to be running smoothly, collecting data can seem a low priority. But when we allow this to happen, the data becomes skewed and less useful going forward. After all, cost control should be about spotting favorable variances as much as it should unfavorable ones.

How often you collect data will differ depending on the size and scope of the project, but a schedule for doing the collection must be set—whether it be weekly, biweekly, monthly, etc.

6. Document all Variations

Even the smallest variations should be documented. They may seem insignificant at the time, but odds are they will come in handy later on. If hourly employees need a few hours of overtime to complete a task, this is an unexpected indirect expense. Little variations like these can seem like flukes, but they can be used to make more accurate budgets in the future.

7. Communicate with the Team

Cost control is not a one-man show. To create smarter budgets, you must convey variations and their causes to the entire team. This keeps everyone on the same page and aware of setbacks and successes. Never make the mistake of thinking data isn’t relevant to team members. Cost control is largely about collecting data, but if no one is using it the data becomes useless.

Project Dashboard Template

We’ve created a free project dashboard template for Excel to help you track tasks, workload allocation, due dates and costs. Simply enter your project data and monitor your project costs at a glance.

Things to Avoid When Controlling Costs and Expenses

Cost control is a nuanced process, but there are ways to make it a bit less tricky. Here are three common cost management mistakes even the best project managers make. Luckily, they are avoidable when you know what to watch out for:

Neglecting to Consider Indirect Expenses

Indirect expenses are overlooked often. These expenses lurk in the background of any project, but the costs add up. Additionally, when you don’t consistently track indirect expenses, you won’t notice costs like an increase in rent, employee benefits and other forms of inflation. In a perfect world, these expenses would be static, but not accounting for their constant changes can easily send you over budget.

Undervaluing Contractor and Supplier Relationships

A good relationship with a contractor or supplier can make controlling direct expenses much simpler. When you have a strong relationship with a supplier, they may be more likely to inform you of price increases ahead of time. Keeping these relationships healthy can make it easier to renegotiate contracts if need be.

Favorable variances may mean you can buy more supplies or contract more help. Unfavorable variances may mean you need to cut back. Either way, a good relationship makes the process painless.

Not Using Automated Tools

The secret to effective cost control is staying on top of expenses, risks and other factors that affect the budget. In order to do so, you must use tools to manage data, track expenses and resources, create reports and make adjustments to budget in real time.

When executing these tasks is a long process, the data may have already changed and you can’t document every variation. Instead, use automated solutions that allow you to see all the information you need at once and make the necessary adjustments and reports.

How ProjectManager Helps With Cost Control

ProjectManager is a cloud-based project management solution that allows you to manage every aspect of your project from anywhere you get work done. Cost control requires current data and fast reporting to make the most accurate estimates. When you cannot access and update this information on the go, the cost control process is stalled.

Resource Management

Our resource management software allows you to track exactly how resources are being used, then allows you to create reports and spot exactly where these resources could be used more efficiently in order to decrease expenses.

Real-Time Cost Tracking

ProjectManager gives you the power to view all the information you need on one real-time dashboard that reflects any project changes. This means spotting variations before they negatively impact your budget.

Cost and expense control is a data-driven process that requires robust project management software to digest and distribute the information. ProjectManager is a cloud-based project management software with tools, such as a real-time dashboard, that can collect, filter and share your results in scannable graphs and charts. Try it today with this free 30-day trial.

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This kind of precision demands the best team management software. There are many options to choose from, but which is right for you? Here are some of the top options in the industry and the pros and cons of each.

2025 Best Team Management Software Rankings

1. ProjectManager

ProjectManager is a front-to-back work management solution without a complicated setup. It’s designed to take all aspects of a project into account, from the planning stage through the end of the project, as well as everything necessary for team management.

Take a look at three of the most notable ways ProjectManager takes team management software to the next level, then try out these features yourself with a free 30-day trial.

See What Team Members Are Working on

ProjectManager’s team management feature was created to drive teams forward. This page shows all the information you need about who is working on what tasks and projects so that you understand their workload. It also means you know exactly where to direct your questions about details.

Whether you’re a manager or a team member, you can use the team page as a directory to connect with other stakeholders and stay on the same page. When you know what everyone is working on and how much is on their plate, it’s simpler to form stronger teams.

Collaborate in Real Time

Every aspect of ProjectManager was designed with teams in mind, so all of our features are built to encourage and support collaboration. One of these is our task management feature. Whether you’re working from a task list or a kanban board, you can add additional team members by simply searching their name or department. Team members receive updates automatically so no changes go unnoticed.

Need to chat directly with a team member? Keep this correspondence in the task itself by leaving a comment and tagging specific team members. The days of toggling between email chains and projects are over. Now, all the information you need is in one location.

Balance Workloads with Ease

ProjectManager’s workload feature eliminates the need to memorize who is working on what. This tool gives a visual representation of what team members are working on, how long they’ve been and will continue to work on them, upcoming gaps in workload and more. This information is necessary to assign the right people to tasks.

To manage a team effectively, it’s crucial to know how much everyone has on their plate. When workloads become too heavy, this can lead to burnout, frustration and in the worst cases, failure to complete tasks.

When you consider ProjectManager’s ability to organize teams, assign work, balance resources and track progress in one, easy-to-use software, it’s clear that it’s the best team management software of 2025. Ready to try it for yourself? Click here to get started for free.

Pricing

• Team plan: $14/user/month
• Business plan: $26/user/month
• Enterprise: Contact sales

Q&A

• Does ProjectManager offer a free trial? Yes, ProjectManager has a 30-day free trial
• Does ProjectManager have a mobile project management app? Yes, it’s available for Android and iOS

2. Microsoft Teams

Microsoft Teams is a member of the Microsoft Office 365 family and was developed to serve as a communication platform for teams using MS Office.

MS Teams is entirely geared toward quick, easy communication, much like Slack. Tools like these are very handy for supplementing other software and boosting communication via a network of chats and channels. This allows employees to create and follow different threads to stay updated on the latest information. Not all messages, and especially quick questions, are worthy of an email and in this case, MS Teams is especially useful.

The Downside of MS Teams

Unfortunately, to use MS Teams for project management purposes, users must toggle between MS Teams and MS Project. This constant back and forth can lead to miscommunication, unseen messages and general confusion. Additionally, you must commit to the full suite of Office 365 applications to access MS Teams.

If your team does wish to use a team management software other than MS Teams, they’re stuck using one application for communication and one for project management. This can become inconvenient, especially for large teams.

Pricing

• Free plan: $0/user/month
• Microsoft Teams Essentials: $4/user/month
• Microsoft 365 Business Basic: $5/user/month
• Microsoft 365 Business Standard: $12.50/user/month

Q&A

• Does Microsoft Teams offer a free version? Yes, Microsoft Teams offers a free plan
• Does ProjectManager have a mobile project management app? Yes, it’s available for Android and iOS

3. Asana

Asana is work management software with team management capabilities. Many teams choose Asana for its simplicity and seemingly user-friendly interface.
Each of these is a cornerstone of project management, and, for some teams, this is totally adequate. But, for most, these features are extremely limiting, both for the projects themselves and for team collaboration.

Tasks can only be assigned to one person, even if the task requires a team of individuals. In this case, each team member must be assigned to a separate but individual task. This means team members cannot leave each other messages within tasks or share important documents and information.

Additionally, while Asana does now offer Gantt charts as a “timeline feature,” these Gantt charts aren’t fully functional and not as robust. The same goes for other advanced project management software capabilities, such as workload management and timesheets.

Pricing

• Premium plan: $10.99/user/month
• Business plan: $24.99/user/month

Q&A

• Does Asana offer a free trial? Yes, Asana has a 30-day free trial
• Does Asana have a mobile project management app? Yes, it’s available for Android and iOS.

4. Teamwork

Teamwork is team management software designed to facilitate stronger, more united teams. Much like Asana, Teamwork lets users create tasks and manage workloads with kanban boards. That being said, Teamwork simplifies things even further, making it well known for its straightforward, user-friendly interface.

As we’ve said, Teamwork revolves around simplicity. But at a certain point, this means sacrificing functionality. Unfortunately, this is where Teamwork finds itself in trouble. The tool falls short as a team management solution, as there aren’t much more users can leave on besides a few work management and communication features. Even for the smallest teams, this poses a big issue and sets a precedent for poor collaboration.

Additionally, Teamwork is similar to Office 365 in that it encompasses a suite of tools. Why is this such a bad thing? In order to plan and manage a project from start to finish and chat with team members, users must jump between multiple tools. This is an unnecessary extra step that slows teams down rather than empowers them to get more done together.

Pricing

• Deliver plan: $10/user/month
• Grow plan: $18/user/month

Q&A

• Does Teamwork offer a free trial? Yes, there’s a 30-day free trial
• Does Teamwork have a mobile project management app? Yes, it’s available for Android and iOS.

5. Basecamp

Basecamp is a project management tool with a heavy focus on team management and, especially, team communication. It’s meant to be the one-stop “basecamp” for the entire team to come together and collaborate while increasing individual productivity.

Basecamp’s most notable feature is its message boards, making it a good communication tool. Conversations are organized by project, rather than by users so everything about a project can be found in one location. This structure isn’t common, but it can be a good fit for the right team (probably a small team).

Basecamp’s major weakness is its limited capabilities. As far as a productivity tool goes, it’s very effective. Users can collaborate and work from personal to-do lists with ease. But as far as managing projects, Basecamp is severely lacking.

Basecamp does not offer any features to create and follow detailed project plans, like Gantt charts, task lists, kanban boards and more. This means team members are cornered into managing their workload from to-do lists alone. As you can imagine, this can make it extremely challenging to see the big picture and understand the project as a whole. Additionally, it requires team members to bounce between tools, one for messaging and another for more advanced project management features.

Pricing

• Basecamp Business: $99 per month

Q&A

• Does Basecamp offer a free trial? Yes, there’s a 30-day free trial
• Does Basecamp have a mobile project management app? Yes, it’s available for Android and iOS.

6. Trello

Trello is team management software for people who love to work with kanban boards. It helps teams collaborate on its ubiquitous boards, lists and cards. The visual tool is ideal for those who are new to project management and want a tool to build workflows. Managers can use the dashboard view to avoid roadblocks and keep teams productive.

That said, one of the major roadblocks has been put up by the app itself. If you want to unlock the power of the tool, you’re going to have to sign up for expensive upgrades. It’s a bit of the old bait and switch. Even if you put the money down for the more comprehensive software, it’s not equipped to deal with larger projects.

Pricing

• Standard: $5/user/month
• Premium: $10/user/month
• Enterprise: $17.50/user/month

Q&A

• Does Trello offer a free trial? Yes, Trello has a 14-day free trial
• Does Trello have a mobile project management app? Yes, it’s available for Android and iOS

7. ClickUp

ClickUp is a team management software that focuses on productivity at any time across many industries. It helps teams with multiple views, from list to board, calendar to Gantt and more. It’s also very customizable. Collaboration is fostered with chat, proofing and other features. Managers will appreciate the real-time reporting to help keep their team on track.

All those features feel at first as if you’ve hit the jackpot, but in time you’ll realize the features fall short. It can be overwhelming and unintentionally get in the way of team productivity. Another hurdle to clear is the steep learning curve. The many features and customization is going to take a lot of time and effort to master. As a team management software, you might throw your hands up in frustration and look for a better-designed tool.

Pricing

• Unlimited: $5/user/month
• Business: $9/user/month
• Business Pro: $19/user/month

Q&A

• Does ClickUp offer a free trial? No, ClickUp doesn’t have a free trial
• Does ClickUp have a mobile project planning app? Yes, it’s available for Android and iOS

8. Monday.com

Monday.com is team management software that’s ideal for marketing campaigns and sales pipelines, but also for general task management and even bug tracking. It’s a highly customizable tool that allows for strong communication, collaboration and visibility. Among the features that stand out are its time tracking, dashboards and integrations with external tools such as Jira, Slack and more.

The promise of those integrations is more than the software can deliver, though. They’re missing many that users probably want. That might seem a minor criticism, but considering the price, you’ll want more than less. Even if you have the money to pay for the tool, it’s best to factor in a long training period as the tool is hard to learn. That’s especially odd as they market it to a general public that is not necessarily aware of project management. Project managers will be disappointed by the difficult time-tracking feature and lack of key project details, such as start and end dates, deliverables, etc.

Pricing

• Basic: $8/user/month
• Standard: $10/user/month
• Pro: $16/user/month

Q&A

• Does Monday offer a free trial? Yes, Monday.com has a 14-day free trial
• Does Monday have a mobile project management app? Yes, it’s available for Android and iOS

9. Wrike

Wrike is team management software that organizes your projects and fosters collaboration while also tracking progress. Some of the features that will attract managers are Gantt charts, reporting tools and security. Many like the three-pane view for task management. It shows a dashboard for resource management, a place to add new tasks, and, finally, a view of all your tasks. Having this in one place is convenient.

It would be nice if a Gantt chart was included in that view as it’s an essential team management software feature. But you’re not getting access to the Gantt chart unless you’re willing to pay for an upgrade. The same is true for the in-app time for time tracking. That’s going to cost you, too. Of course, before you upgrade you have to onboard your team. That process might sour you before you even get started using the software.

Pricing

• Professional plan: $9.80/user/month
• Business plan: $24.80/user/month

Q&A

• Does Wrike offer a free trial? Yes, Wrike has a 14-day free trial
• Does Wrike have a mobile project management app? Yes, it’s available for Android and iOS.

10. Airtable

Airtable is a team management software that manages work, visualizes data and provides stakeholders with information from multiple sources. You can automate repetitive tasks, use other automation to keep teams focused on more important work and build product roadmaps. The software works as a spreadsheet, which is going to help those who are familiar with Excel but are looking for more than Excel can offer.

That spreadsheet feel is also going to alienate many users who want team management software that works better with teams. Like Excel, there’s a steep learning curve but unlike Excel, there’s no formula bar. There’s also a major hole in the communication department as there’s no tab for general discussions. That can get in the way of team collaboration. It’s also one of the more expensive tools rated here. Users might prefer to just stick with Excel, but those who think that way should look over the rest of our list. There are some solutions that put Excel fast disappearing in the rearview mirror.

Pricing

• Plus: $10/user/month
• Pro: $20/user/month

Q&A

• Does Airtable offer a free trial? Yes, Airtable has a 14-day free trial
• Does Airtable have a mobile project management app? Yes, it’s available for Android and iOS

Team management software is a crucial part of successfully managing any project, and without diligent team management, projects can fail altogether. For this reason, intuitive team management tools are a must-have feature of any comprehensive PM solution. ProjectManager puts everything you need in one location, allowing teams to plan and manage projects while boosting collaboration within every feature. See how we integrate team management into all of our tools by trying it yourself for free.

The post Best Team Management Software of 2025 for Managing Projects appeared first on ProjectManager.

It’s this need that has driven ProjectManager to create a robust suite of work management features for marketing teams.

ProjectManager Helps Marketing Teams

Marketing teams have countless moving parts, and they require seamless communication and collaboration. Without a work management solution, a marketing team won’t be able to efficiently request assets, ask questions, create content and many other important duties.

Because these tasks are so diverse, ProjectManager is designed with every marketing team’s needs in mind.

Calendar View

Marketing teams are constantly creating marketing materials or requesting for them to be made. These assets are part of a larger content calendar that shows everything that will be posted over the course of a period of time – a week, a month, a quarter, etc.

Plan and execute your work using ProjectManager’s calendars. Try our software for free today!

A content strategy encompasses many things – graphics, copy, videos, pictures, and so on. All of these different types of marketing materials must be scheduled out somewhere, and there’s no better place than on a calendar.

ProjectManager’s calendar allows you to mark when different pieces of content need to be created, reviewed and shared. Simply create a task, set due dates, assign priority and assign it a tag, then add whoever is responsible for this piece of content. When they’re done, all they need to do is attach the content to the original task.

Kanban Board

Marketing projects are a team effort. One of the best examples of this is an email marketing campaign, which requires writers, editors, graphic designers and strategists. In times like that, it’s crucial to create and share tasks in a way that makes things simpler.

ProjectManager’s kanban board allows users to create tasks and attach comments, files, links and more within the tasks themselves. When the task is created and assigned, the kanban card can then be dragged and dropped into different columns as desired.

This makes adjusting workflows easy and ensures that the whole team knows the progress of each task. Ready to have an asset reviewed? Created a ‘to be reviewed’ column and drag completed tasks there.

Gantt Chart

Some of the biggest deliverables a marketing team works toward are new initiatives and product launches. Such initiatives are treated as big projects, and big projects require powerful tools.

Gantt charts are one of the best ways to plan, schedule and manage complex projects. One of the most important features to look for in a Gantt chart for a marketing team is the ability to access the chart and make changes on the go. ProjectManager’s Gantt charts are 100% cloud-based, so team members can stay on top of their work from anywhere and never worry about losing data.

Another crucial Gantt chart feature is the ability to filter by anything you need. Because Gantt charts contain so much information, they can feel a bit intimidating. Using filters is one of the best ways to narrow the scope and see only what’s applicable to your workload. ProjectManager’s Gantt chart allows users to filter their view by task due date, assignees, task type and more.

Tasks List

Tasks lists are an absolute must for any marketing team, whether they’re working on a complex project or day-to-day responsibilities. The difference between using a simple task list and a project management tool with advanced tasks lists features is the potential to increase productivity and collaborate on tasks.

ProjectManager’s tasks lists ensure that each task contains all the relevant information to its deliverable. ProjectManager’s task lists also allow users to add additional team members to existing tasks. Need help with a task or have a question for someone outside of your department? Simply add them to the task and tag them in a comment.

Kanban boards allow you to see tasks in the context of all workflows. Tasks lists, on the other hand, keep things straightforward. Because the nature of marketing projects is so diverse, it’s important to have both of these options at your disposal.

Dashboard

Marketing teams need top-notch tools to plan and schedule projects, complete tasks and collaborate. They also need a way to consistently track progress – a “command center.” Marketing teams are especially collaborative, so it’s even more important for everyone to see the same information. Using a project dashboard ensures everyone is on the same page.

Using a project dashboard is especially important when teams are managing more than one project at the same time. For a marketing team, this might look like creating two different email campaigns at once or preparing for separate events, simultaneously.

No matter how many different items are on the agendas, the best dashboards show users all progress, in real-time. Easily compare progress to baselines and see where there’s room for improvement, either in one project or across all projects. Dashboards are designed to show this information in an easy-to-understand, visual way that doesn’t take long to digest.

ProjectManager is a cloud-based work management software with features that will help bring success to your next marketing campaign. Plan, monitor and report on your work with one software that gives your marketing team the tools they need to collaborate for greater productivity. Make your next marketing initiative a success with ProjectManager—try it free today.

The post How Marketing Teams Use ProjectManager appeared first on ProjectManager.

This work can take many forms, such as updating project documents, maintaining equipment, submitting expenses, etc. The unifying characteristic of this work is that it must be done regularly to support a greater task.

Level of Effort Examples

The best way to understand level of effort is by looking at common support activities that take place in almost any project. We’ve a few level of effort examples below.

Managing Stakeholders

Stakeholder management is the art of creating strong relationships between everyone involved in a project. Good stakeholder management requires constant communication and transparency. Depending on the scope and size of the project, the level of effort for stakeholder management activities will go up and down, and it is important to be aware of how much energy it will take. Stakeholder management includes sending regular updates, scheduling meetings, hosting calls, creating documents, etc.

Updating Reports

All projects require thorough documentation in the form of project reports. These reports should be created throughout the project lifecycle to check progress and compare it against the project plan. One common example is a budget report. To create an accurate budget report, you must keep up with supporting activities like submitting receipts and expenses, communicating with stakeholders, recording cost changes, etc.

Communicating with Customers

Depending on the project, communicating with customers can be very important. If, for example, you’re scoping for a product update, it’s key to talk with customers about what they’d like to see improved and/or changed. This includes sending out emails, requesting reviews, posting surveys and making phone calls.

Why Is Calculating the Level of Effort Important?

Effort is a resource like anything else. When we think about resource management, our minds go to tangible things like money, equipment and materials, but it is just as important to consider effort.

As you can imagine, achieving some deliverables will require more work than others. This means they have a higher level of effort, but it doesn’t necessarily mean they need to be more difficult. In fact, when we know the LOE for deliverables, you can anticipate how much work tasks will require and be better prepared. Resource scheduling tools help with this process. ProjectManager let’s you build resource schedules and manage your team’s workload in one tool for better execution. Try it free.

When Should LOE Be Calculated?

The level of effort should be calculated during the planning phase of a project when tasks are being created. Tasks with a higher level of effort require more work to be completed. Generally, this work takes place at regular intervals throughout the task or project, so it’s important to understand how much total effort it will require.

Establishing the level of effort during the planning phase helps spread workload evenly and allows for a more accurate schedule. If certain team members are assigned to too many high LOE tasks in their workflow, it may be time to redistribute tasks.

What Is Effort Estimation?

To know a task’s LOE, you must practice something called effort estimation. Effort estimation is the process through which we approximate how much time, energy or money deliverables will demand so that we can rank this on a scale.

Effort estimation is one the core components of project estimation, along with resource estimation and cost estimation. These estimations are the foundation of sound project planning. The more accurate your estimations are, the more accurate your overall project plan will be, and the fewer variances you will need to deal with.

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Capacity Planning Template

Use this free Capacity Planning Template for Excel to manage your projects better.

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Effort Estimation Examples

Effort estimation is how we quantify the LOE for different deliverables and the tasks they call for. Depending on the team, project, project leader or organization, effort may be estimated differently. But, regardless of the effort estimation method, all of the examples below involve the team sitting down to discuss and decide on the level of effort as a group.

During the project planning phase and the project planning meeting, you will create tasks to support this project and its deliverables. When the tasks have been created, it’s time to decide their level of effort via effort estimation. In other words, how much time and energy (in the form of support activities) will each task require? Here are a few common ways many teams do so:

• Rank by Priority: It’s always a good idea to get the team on the same page about the priority of tasks. One way to do this is by having them assign each task a level of priority in the form of a number. Then, tasks can be listed in order of highest priority or lowest priority. The higher priority a task is, the higher level of effort it may require to get it done.
• Sort into Categories: Another helpful method for estimating effort is to sort tasks into predetermined categories, such as low, low-mid, mid, high and highest priority. Sorting them into these “boxes” is a helpful way to compare tasks with one another and estimate which will be more or less effortful.
• Assign Numerical Value: Perhaps the most clear-cut method of effort estimation is assigning each task a numerical value on a predetermined scale. Many teams use the default 1-10 scale, but it’s not uncommon to see smaller or larger scales. When a scale has been set, individual team members will then assign tasks values and compare their estimations with each other. Together, the entire team will come to a consensus on where each task should fall on the scale.

An Example of a Level of Effort Scale

There are many different methods to begin the effort estimation process. Teams may even choose to use more than one of these methods and combine their results. Once they have come to a final decision, they must display their decisions via tasks plotted on a scale.

This scale should be used to show LOE for all tasks in comparison to one another. Different projects may use different forms of level of effort scales depending on their size, scope and other characteristics. This is fine, so long as the team understands the level of effort scale being used and the criteria for plotting tasks on the scale is consistent.

How to Calculate Level of Effort

Now that we’ve looked at how to calculate the level of effort conceptually, let’s look at a real-world example in the context of a simple project. Imagine managing a project to improve communication between employees working remotely, and use these three steps to determine LOE:

1. Decide how accurate your estimates must be: Accuracy is always important, but some projects demand a higher level of accuracy than others. It can help to look at the big picture by examining deliverables and deciding how flexible your LOE projections can be. In this case, we can safely say there should be moderate accuracy, but some differentiation won’t cause project failure.
2. Use an effort estimation technique: At this point in the project, you will have created your task list. Now it’s time to use one of the three methods discussed above to do effort estimation for each task. There are, of course, many other methods you can use, so long as you’re using the same metric to measure all tasks in a project. Additionally, don’t forget to take general management and upkeep hours into account because most support activities don’t have a firm stop until the project is complete.
3. Add values to the LOE scale: When you’ve completed effort estimation for tasks, each should have a number or be sorted into a category. From this point, you can rank them from the lowest level of effort to the highest level of effort. Now the entire team can reference this when approaching tasks, and the project manager can see tasks from a different viewpoint.

Resource Capacity Planning Template

This resource capacity planning template helps you define your resource capacity, allocate work to your team members, monitor your resource utilization rate and track costs.

How ProjectManager Helps With Level of Effort

ProjectManager gives users everything they need to calculate level of effort and put that information to work. Because ProjectManager is a cloud-based solution that updates automatically, you’re always working with the most current data. This eliminates any worry that things like level of effort may not be up to date.

Calculating level of effort can include accounting for things like how many team members should be assigned to a task, how many resources are required, how many hours tasks will take and more. With ProjectManager, all of this information lives in the task itself. It also entails determining which tasks require supporting activities. These supporting activities can then be added to our task management features.

Check Progress to Stay on Track

Check task progress, hours worked and assignees, all from the project dashboard, kanban boards or task lists. Then, check timesheets to see how long similar tasks took in the past and make better predictions for the future.

When running an agile project, you need tools to support your sprints. ProjectManager is online project management software with powerful task and resource management features that can help you ensure your team is never overloaded. See how ProjectManager can assist with your estimations by taking a free 30-day trial today.

The post What Is Level of Effort (LOE)? Plus, 5 Tips for Effort Estimation appeared first on ProjectManager.

That’s where communication planning comes into play.

What Is Communication Planning?

Communication planning is the process of laying out how communication will take place between team members and stakeholders, whether it be on a project, in an organization or both. In other words, managers use a communication plan to create a formal process for sharing information.

This includes creating systems of communication and order of operations to follow. This can sound dry, but it is ultimately a creative process and should be treated as such.

What Is the Purpose of a Communication Plan?

Creating a communication plan provides a framework sharing information, no matter what it’s regarding or who it’s being shared between. It’s easy to assume that communication is simple—a no-brainer. This is a common mistake. Because we often assume communication is natural, it’s easy to become informal.

Creating a plan gives you the exact steps to follow so that everyone understands the message and knows who to ask questions to if need be. Using a communication plan as the structure for your message creates a dependable resource for everyone to use.

Who Should Focus on Communication Planning?

Communication planning is a group effort, and all stakeholders should collaborate on creating the best organization-wide plan possible. Because they should be consistent no matter the department or project, it’s important that everyone understands them.

That being said, communication planning is most effective when led by an individual. Depending on the context of the plan (whether it will be instituted organization-wide or used for a single project) this person will vary. For example, a communication plan for an entire organization might be created by someone in HR or leadership. A special plan for a project, on the other hand, would be created by the project manager.

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Communications Plan Template

Use this free Communications Plan Template for Word to manage your projects better.

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What Are the Steps in Communication Planning?

It’s easy to get lost in the weeds when creating a communication plan. To make sure you cover all your bases, follow these steps:

1. Determine Communication Needs

The best place to start is by determining your specific communication requirements. For example, it’s helpful to think about who will be communicating. Will different departments be communicating with one another? Will HR be communicating with the entire organization? All of these potential scenarios must be considered.

2. State Why Each Communication Is Necessary

One of the most important things to consider when creating a communication plan is why it’s even necessary. Like we mentioned above, communication can seem like second nature. Why do we need a plan at all? But when we pinpoint exactly why we need a plan and how that plan will enhance teamwork, we’re motivated to create something effective.

3. Establish How the Team Will Communicate

This step is fairly simple. Someone needs to decide exactly how communication will take place. In other words, what tools will the team use? For example, teams may use email for some messages and third-party apps, like Slack, for others. There may also be documents and reports that need to be completed and archived.

If you’re using a project management software like ProjectManager, then you can manage all your project plans, project communications and project documentation in one intuitive online platform.

4. Decide How Often Official Communication Will Take Place

Many plans set concrete intervals for communication, no matter the message. These communications can be thought of as “check-ins” and serve to keep everyone on the same page and feeling informed. This also creates a written record of the past.

5. Assign Communication Responsibilities

Whoever creates the plan is also responsible for deciding who will do the sharing—department heads, officers, etc. These individuals could then potentially pass their messages along to someone tasked with putting together a comprehensive update or formatting the information a certain way. All of these responsibilities need to be considered and assigned.

Related: 5 Free Project Report Templates

Important Parts of a Communication Plan

As you’re writing a communication plan, there are five important things to keep in mind. When all five of these things are taken into consideration, you can feel confident you’ve covered all your bases. The best way to ensure you understand these elements is by answering the following questions related to each:

Audience

“Who is this message for and is there more than one audience?”

Establishing the audience of the message is the best place to start communication. For example, think about who will be communicating, such as different departments, executives, outside agencies, etc. This audience will affect the message and how it’s delivered.

Message

“What is the message itself and is this message clear?”

The message is what drives a communication plan. Before you begin creating your plan, you must be sure to know exactly what you’re trying to communicate, in the simplest possible terms.

Purpose of the Message

“Why is it important to share this message?”

Determine the exact purpose of the message to be sure it’s clear and includes all the necessary information. How? Try describing the purpose of the message in as few words as possible. This can be a challenging exercise, but it improves the salience of the message.

Communication Method

“How exactly will the message be shared and what systems will be used?”

This part of communication planning is fairly cut and dry. As the person creating it, you must make sure team members understand where messages will be coming from and how they should reply. For example, if all of your messages will be delivered through a certain slack channel, this needs to be specified. Similarly, if you wish to keep all of your communications within a project management tool, this needs to be made clear.

Communication Timing

“How often should communication take place and what is the best interval?”

The best communication plans are set up to keep communication alive and consistent, even if some messages are simple check-ins. The worst plans are created to deliver only huge announcements. One way to prevent this is by establishing an interval for messages to go out. This could be weekly, monthly, or even daily, in some cases. For example, a one might include instructions to create and share a daily report with a supervisor.

Communication Plan Template

This free communication plan template for Word helps you establish the communication guidelines that will be followed to communicate with your project stakeholders. Describe the communication objectives, schedule, delivery channels and other important details.

Why Use a Communication Plan Template?

When it’s time to create an official communication plan, using a template can be extremely advantageous. As we’ve shown, they can be complex documents and there’s more to them than meets the eye.

Using a communication plan template helps protect you from leaving out pertinent information or creating a document that is difficult to understand. We’ve all written something that makes perfect sense in our head but isn’t as clear to other readers. Communication plan templates are specifically designed to eliminate this risk and establish a reliable, consistent format to communicate.

Communication Planning Best Practices

Communication planning comes with its fair share of challenges, like anything else. These best practices can help avoid hiccups.

Create an Accountability System

Inevitably, there will be moments when it seems easier to “go off script” and forget about following a plan. This is especially true when a message is simple, but it’s still just as important to follow the plan for the sake of consistency.

For this reason, it’s helpful to put an accountability system in place that reminds everyone how important it is to always use the plan. When everyone understands this importance, they’re less likely to deviate from the plan.

Regularly Evaluate Effectiveness

Making the best possible communication plan can be a work in progress, so don’t put yours on a shelf to gather dust. Instead, monitor its effectiveness and continually brainstorm new ways to improve the plan. As organizations and projects grow, plans may need to adapt.

If there are miscommunications, it may be time to assess why they happened and what could have been done to avoid them. Similarly, communication plans may need to adapt as organizations and projects grow in order to remain effective.

Listen to Feedback from Stakeholders

Feedback from people actually using the plan is invaluable. If team members and stakeholders strongly dislike the plan, they’re much less likely to use it. Similarly, if the communication plan isn’t doing its job—clearly sharing information—it’s time to make changes. If stakeholders don’t understand the information, there’s no point in sharing it at all.

How ProjectManager Simplifies Communication Planning

Communication plans are static documents. Project management software brings them to life and provides team members with the exact tools they need to follow the plan. When your communication plan and these tools live in the same location, the plan itself is much easier to follow.

ProjectManager cuts down on the time and energy it takes to create a communication plan and put it to work. Whether you use a template or make a communication plan from scratch, upload the document into ProjectManager so that any team member knows exactly where to find it. Because when a communication plan is easy to find and access, everyone is far more likely to use it.

Organize Your Team and Their Skills

When you’ve created your communication plan, it’s time to put it to work! ProjectManager offers all the features you need to inspire and execute the most effective communication plan possible. Team members can leave comments in tasks and tag one another, as well as add additional team members to tasks. These tags and comments make asking questions, getting answers easy and referencing communication in the future simple.

ProjectManager is a cloud-based project management software that provides your team a collaborative platform to plan, track and report on their progress. See how it can make your projects more productive and efficient by taking trying the software for free today.

The post Communications Planning: A Quick Guide appeared first on ProjectManager.

In order to talk about Gantt chart dependencies, though, we must first talk about Gantt charts.

What Is a Gantt Chart?

Gantt charts are a well-known project management chart. Gantt charts are visual tools created during the project planning phase and are used to show a wide range of project data as simply as possible with horizontal bars.

This horizontal bar chart is the easiest way to see how projects are scheduled over time. This includes which tasks must be completed, how long those tasks should take, who is responsible for which tasks, etc. Gantt charts also allow you to create and view milestones.

ProjectManager allows you to create a Gantt chart in minutes. And unlike other Gantt chart software, it features all four different types of Gantt chart dependencies, so you can quickly build a schedule and stick to it. Start hitting your milestones with a free trial of ProjectManager today.

Gantt Chart Dependencies

Most of us understand dependencies in a broad sense: activities can be interrelated and influenced by one another. This holds true for Gantt chart dependencies. Also called a task dependency, a Gantt chart dependency refers to how project tasks are related. In most projects, there will be multiple tasks taking place at once or in quick succession. When this is the case, these tasks have an effect on one another and are known as Gantt chart dependencies.

On the Gantt chart itself, each task is represented as horizontal bars which show task duration. The longer the bar, the longer you have to complete the task. But, each individual task does not exist in a vacuum and is dependent on another. Each shares a unique relationship. Even the very first task in a project shares task dependencies with others. These Gantt chart dependencies are represented by lines between the horizontal bars.

Four Types of Gantt Chart Dependencies

Gantt charts are an excellent way to create and see tasks, but first you must know exactly how your tasks are related and how this will be illustrated. This is a critical part of task management. Depending on the task dependencies, the tasks themselves will look different on the Gantt chart. When you don’t know what these variations look like and what they mean, Gantt charts quickly go from being helpful to seeming jumbled and confusing.

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Never fear. As long as you have a clear understanding of the four main dependencies, you’ll know exactly what you’re looking at, and you’ll be able to discern even more information from Gantt charts. Think of each of these task dependencies as key words in learning to speak Gantt chart.

1. Finish-to-Start Task Dependency

A finish-to-start dependency is extremely common and fairly simple to understand. This type of dependency occurs when the initial task must be completed for the next task to begin. As such, if task A is completed behind schedule then task B will begin behind schedule as well, creating a domino effect.

2. Start-to-Start Task Dependency

A start-to-start dependency occurs when a secondary task cannot begin until the initial task begins. Now, it’s important to note that the two tasks do not have to begin at the same time (and often do not). Task B can begin well after task A, so long as task A has started. In many cases, the initial task will even finish before the next task begins. But, because task A does not have to be completed before task B can begin, this is not a finish-to-start dependency.

3. Finish-to-Finish Task Dependency

A finish-to-finish dependency refers to a situation in which the initial task must be completed in order for the following task to be completed. Task A and task B are directly related, and these two tasks can even take place at the same time, but task B is totally contingent on task A. That said, task B does not have to be finished at the same time as task A.

4. Start-to-Finish Task Dependency

Start-to-finish dependencies are uncommon, though they do occur from time to time. This dependency is the inverse of a finish-to-start dependency, where the initial task must be completed to move onto the next. In a start-to-finish dependency, the initial task cannot be finished until the secondary task has begun. That being said, task B does not have to finish at the same moment task A begins.

Why are Task Dependencies so Important?

In a project, certain things must happen in a particular order for the end result to be a success. When they don’t, you end up with sometimes disastrous results. In other words, projects are not like a list of errands that you can run in any order you wish, as long as they all get done.

The only way to successfully execute a project is to plan tasks as they must be done, and understand their dependencies. When you can anticipate these task dependencies, you will be able to schedule them more accurately. For example, if you know Task B cannot begin until Task A is complete (finish-to-start dependency), you also know how these tasks need to be scheduled on a Gantt chart. Task A will be its own horizontal bar, as will Task B. There will be no overlap.

Understanding the task dependencies of your project is also one of the only ways to save your project from failure in the event something major goes wrong with a certain task. Because you know how each of your tasks is related, you can make adjustments to dependent tasks and hopefully save your project from preventable setbacks.

Gantt Chart Template

This free Gantt chart template for Excel allows you to create a project schedule based on tasks, their due dates and duration. You will not be able to use it to identify task dependencies, but you can upload it into ProjectManager to use a fully-featured Gantt chart with task dependency mapping and critical path analysis tools.

A Few More Task Dependencies Terms

If you plan to do more research on task and Gantt dependencies, there are a few key terms you’re guaranteed to see:

• Predecessor Tasks: Predecessor tasks are the tasks that come first. In order to understand predecessor tasks, just remember that these are always the tasks that must be completed or started before the next task can begin. For example, in the case of a Finish-to-Start task dependency, Task A is the predecessor task. In a Finish-to-Finish dependency, Task A is the predecessor.
• Successor Tasks: If you know what a predecessor task is, remembering the definition of a successor task will be easy. As the name implies, a successor task comes after predecessor tasks. It is dependent upon the initial task being completed or started. Many people assume that Task A is always the predecessor and Task B is always the successor. But, in a start-to-finish dependency, Task A is actually the successor.
• Lead: Things don’t always go exactly to plan, sure. But sometimes those changes are actually good things. Lead refers to how far ahead a task can be, assuming its predecessor task is also ahead of schedule. If Task A and Task B have a Finish-to-Start dependency, and Task A is completed ahead of schedule, Task B can begin with a “lead.” If Task A was originally scheduled to take 5 days to complete but only took 3, Task B will now have a 2 day lead.
• Lag: Lag is exactly what it sounds like; the amount of time behind schedule the successor task is, based on how much longer than planned the predecessor task took. This is something to avoid, yes, but when you understand Gantt chart dependencies it doesn’t mean your project is bound to fail. If Task A and Task B again have a Finish-to-Start dependency, and Task A is scheduled to take 7 days but ends up taking 10 days, Task B has a 3 day lag.

Try ProjectManager for the Complete Gantt Chart Experience

By now, you’re probably tired of reading about the importance of task dependencies and are feeling ready to put them to work. Luckily, ProjectManager offers online Gantt charts that make it simple to plan, schedule and update your task dependencies in only a few steps.

Once you have created a task and input important details like name, assignee, start date, completion date, etc. you will see a horizontal bar appear on your Gantt chart. The length of the bar will reflect the duration of the task.

Collaborate on Tasks, and Task Dependencies Won’t Hold You Up

Collaborate with team members every step of the way by leaving comments and attaching any documents you desire. This way, everything any team member needs is in one location.

How to Make a Gantt Chart on Mac
Displaying the Critical Path on a Gantt Chart

ProjectManager is a cloud-based project management software that has a best-in-class Gantt chart you can use to track your tasks and their dependencies. With it, you can easily plan, monitor and report on projects while giving your team a platform to collaborate and achieve more. Use ProjectManager for your next project by trying it for free today!

The post Gantt Chart Dependencies: Understanding Task Dependency Types appeared first on ProjectManager.