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Project Funding Requirements

An estimate of the money that must be released to the project, drawn from the cost baseline, shown either as a total or by time periods, and covering expected spending plus foreseeable obligations and liabilities.

Key Points

  • Derived from the cost baseline and shows how much funding is needed and when.
  • Can be expressed as a total amount or time-phased by period (e.g., monthly or quarterly).
  • Includes projected expenditures as well as anticipated liabilities and obligations.
  • Supports funding limit reconciliation and cash flow planning with sponsors and finance.

Example

A 10-month infrastructure project has a cost baseline of $2.0M. The project funding requirements specify releases of $150k per month for months 1-4, $250k per month for months 5-8, and $300k per month for months 9-10, totaling $2.0M, plus an additional $100k to cover expected liabilities such as retention and warranty holdbacks. Finance uses this schedule to allocate cash to the project in the needed periods.

PMP Example Question

Which artifact identifies the amount and timing of money to be made available to the project, based on the cost baseline, including planned spending and anticipated liabilities?

  1. Cost Management Plan
  2. Project Funding Requirements
  3. Cost Baseline
  4. Risk Register

Correct Answer: B — Project Funding Requirements

Explanation: The project funding requirements show the total and/or periodic funding to be provided, derived from the cost baseline, and include projected expenditures plus anticipated liabilities.

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