Cost Resources in Project Management – Definition and Meaning
In project management, cost resources are specific resources that incur costs, but unlike personnel resources (work resources), they are characterized primarily by their consumption or use rather than by working time. They are used to plan and track non-personnel, often fixed or variable project expenses. Cost resources are typically applied in cost management and budget planning by capturing expenditures for materials, equipment, licenses, travel costs, or other tangible items.
Example, best practice, and further information on the term
In a construction project, typical cost resources could be the required quantities of concrete, steel, bricks, or the rental of special construction equipment, the costs of which are directly planned and tracked. A proven best practice is to plan and budget cost resources and their anticipated costs precisely, and to monitor their actual consumption or occurrence during the project. This aligns with resource and cost management according to PMBOK and supports agile principles of cost transparency. Detailed planning and tracking of cost resources enables precise budget control and supports decisions for cost efficiency.