Project Funding Requirements in the PMP Exam

Project managers must know their project's funding requirements in order to ensure their project stays on track and within budget.  In the cost baseline, the total funding requirement is the cost, including management reserves. In the period funding requirement, payments are made annually and quarterly. Project managers can develop a funding plan that caters to these requirements.

The funding requirements for the project are integral to the control costs process and are created from the cost baseline which is an output of determine budget process. The cost baseline is derived from the process of determining the budget for the project. The sum of these sources of funds are those in the baseline, plus the sum of money for management reserve. It might also be broken up by what periods of time the organization will fund it with. In order to avoid or limit costs, requirements are a big input.

PMI determines project funding requirements using its determine budget process. Cost baseline is typically used to determine project funding requirements. It is also possible to separate out the funding requirements by the period during which funds are disbursed. The total funds consist of the baseline and the management reserve. Costs are controlled by inputs such as requirements.

See also: Control costs