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Control Account

A formal control point in the project where scope, budget, actual costs, and schedule are brought together and evaluated against earned value to measure performance.

Key Points

  • Located at the intersection of a WBS element and the responsible organization (OBS), typically managed by a Control Account Manager (CAM).
  • Groups related work into work packages and, when needed, planning packages under a single performance baseline.
  • Serves as the unit for earned value calculations and variance analysis (PV, EV, AC, SV, CV).
  • Enables consistent performance tracking and roll-up reporting to higher project levels.

Example

In a hospital IT upgrade, the "Network Infrastructure" control account aligns WBS 2.3 with the Network Team. It has a time-phased budget of $600,000. After two months, PV = $200,000, EV = $180,000, and AC = $220,000. The CAM notes both a cost overrun and schedule slippage and proposes corrective actions such as resource reallocation and supplier negotiation.

PMP Example Question

Where are scope, budget, schedule, and actual cost integrated and compared to earned value to assess performance?

  1. Work package
  2. Control account
  3. Project charter
  4. Cost center

Correct Answer: B — Control account

Explanation: A control account is the defined point in the WBS-OBS structure where performance is measured using earned value metrics.

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