Financial Management

Financial management refers to the efficient and effective management of budgeted funds in such a manner as to accomplish the objectives of the organization. It is the specialized function directly associated with the program and project management.

Financial management by Clavis

Cost estimation and budget planning >>

Cost reduction and performance improvement >>

Earned value management and forecasting >>



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Cost Estimation and Budget Planning

One of the most significant contributor to a successful project is to begin with good cost estimates and a well-planned budget. As such, our project managers leverage their deep industrial knowledge and industry standard techniques to iteratively develop a close approximation of the monetary resources needed to complete project activities. The project manager estimates costs for all resources and materials that will be charged to the project.

This includes but is not limited to:

  • • Labor and Services
  • • Materials and Equipment
  • • Software and Hardware
  • • Overhead or Administrative Charges and Facilities
  • • Contingency Costs


Our team leverages common tools and techniques in the cost estimation process:

  • • Past Experience and Expert Judgment
  • • Parametric Estimation
  • • Bottoms-Up Estimation
  • • Three-Point Estimates
  • • Reserve and Contingency Analysis
  • • Analogous Estimation
  • • Vendor and Market Analysis

Cost Reduction and Performance Improvement:

It is a fact of life that we live in a dynamic society that is always in motion. As such and from time-to-time, our projects need to adapt to a change in scope, schedule or budget.

Our team leverages scheduling techniques to improve time performance:

  • • Schedule Optimization
  • • Crashing
  • • Fast Tracking


Our team also achieves cost reduction by:

  • • Validating previously defined cost estimates and by re-evaluating project cost assumptions
  • • Looking to implement less costly alternatives
  • • Identifying cost savings areas and implementing process improvement solutions


Earned Value Management and Forecasting

The ability to track and report sunk costs is a critical part of project management. Earned Value Management (EVM) is a technique for measuring project progress and performance in an objective manner. EVM together with an analysis of the schedule and cost variances, provide the solid foundation for budget forecasting.

EVM is part of a complete financial assessment package that includes but is not limited to the calculation of:

  • • Budgeted Cost of Work Scheduled or the “Planned Value”
  • • Budgeted Cost of Work Performed or Earned Value
  • • Actual Cost of Work Performed
  • • Budget at Completion
  • • Estimated Budget at Completion
  • • Cost Variance (Actual)
  • • Schedule Variance (Historical)
  • • Variance at Completion (Forecasted)


For more information please contact us.

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