A cost management plan should cover costs across which lifecycle phases?

A cost management plan should cover costs across which lifecycle phases?

• A. Costs Associated with Post-Construction Phases
• B. Costs Associated with Design and Procurement
• C. Costs Associated with Design, Procurement, Construction and Post Construction Phases
• D. Costs Associated with Procurement, Construction, and Post-Construction

Answer: (C)

The plan for managing costs must apply to the entire project lifecycle, not just a portion of it. Costs arise in design, procurement, construction, and post-construction, and decisions in one phase often impact others. By including all four phases, the cost management plan establishes a complete estimate, budget, and control process that stays aligned with the project’s goals from concept through operation. In design, early estimates and value engineering influence scope, materials, and changes that ripple into procurement and construction costs. In procurement, sourcing, contracts, and supplier choices shape cost certainty and potential savings or overruns during construction. In construction, direct and indirect costs, contingencies, and change orders affect the budget in real time. In post-construction, operation, maintenance, warranties, and eventual decommissioning drive total lifecycle costs that often surpass upfront construction expenses. A holistic approach ensures accurate budgeting, effective change control, and meaningful lifecycle cost analysis, preventing gaps that could lead to unexpected overruns or undervalued long-term expenses.

The plan for managing costs must apply to the entire project lifecycle, not just a portion of it. Costs arise in design, procurement, construction, and post-construction, and decisions in one phase often impact others. By including all four phases, the cost management plan establishes a complete estimate, budget, and control process that stays aligned with the project’s goals from concept through operation.

In design, early estimates and value engineering influence scope, materials, and changes that ripple into procurement and construction costs. In procurement, sourcing, contracts, and supplier choices shape cost certainty and potential savings or overruns during construction. In construction, direct and indirect costs, contingencies, and change orders affect the budget in real time. In post-construction, operation, maintenance, warranties, and eventual decommissioning drive total lifecycle costs that often surpass upfront construction expenses.

A holistic approach ensures accurate budgeting, effective change control, and meaningful lifecycle cost analysis, preventing gaps that could lead to unexpected overruns or undervalued long-term expenses.