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7 - PROJECT COST MANAGEMENT

7.3.1.8 Agreements

Described in Section 12.2.3.2. Applicable agreement information and costs relating to products, services, or
results that have been or will be purchased are included when determining the budget.

7.3.1.9 organizational Process Assets

Described in Section 2.1.4. The organizational process assets that influence the Determine Budget process
include, but are not limited to:

• Existing formal and informal cost budgeting-related policies, procedures, and guidelines;
• Cost budgeting tools; and 7

• Reporting methods.

7.3.2 determine Budget: tools and techniques

7.3.2.1 cost Aggregation

Cost estimates are aggregated by work packages in accordance with the WBS. The work package cost estimates
are then aggregated for the higher component levels of the WBS (such as control accounts) and ultimately for the
entire project.

7.3.2.2 reserve Analysis

Budget reserve analysis can establish both the contingency reserves and the management reserves for the
project. Management and contingency reserves are addressed in more detail in Section 7.2.2.6.

7.3.2.3 Expert Judgment

Expert judgment, guided by experience in an application area, Knowledge Area, discipline, industry, or similar
project, aids in determining the budget. Such expertise may be provided by any group or person with specialized
education, knowledge, skill, experience, or training. Expert judgment is available from many sources, including, but
not limited to:

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©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK Guide) – Fifth Edition 211

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This copy is a PMI Member benefit, not for distribution, sale, or reproduction.