
Rudy Warnock served for years as the owner of Warnock and Associates in Canton, Mississippi, where he was the engineer of record for all projects. A project management expert, Rudy Warnock also has extensive experience in the development of project scopes, schedules, and funding.
Project management professionals rely on two types of funding requirements when overseeing projects: the total funding requirement and the period requirement. While the total funding requirement refers to the total cost, including management reserves, the period funding requirement defines annual and quarterly payment requirements. Both requirements stem from the project’s cost baseline.
The cost baseline includes the costs of all activities and resources associated with a project, in addition to funds set aside to manage potential risks. In other words, the cost baseline is derived from the cost estimates for a project, plus any necessary contingency reserves.
The cost baseline also serves as a spending plan for a project. This allows for performance management measures to be put into place that help to ensure a project stays on budget. Since it is a structured plan, any changes to a cost baseline typically adhere to formal change management processes.




