What is the cost performance baseline?

Cost Performance Baseline (cost and performance baseline) is an approved plan that combines the project budget and schedule of work. It serves as a benchmark for measuring and controlling project costs and progress.

In simple terms, it is an agreed-upon foundation that project managers rely on to compare actual costs and performance with the planned ones. If actual indicators deviate from the baseline, it signals the need for analysis and corrective actions.

For example, a project has an approved budget of 1 million rubles and a schedule with key milestones. These data form the cost performance baseline. During the work process, the manager monitors whether the team stays within the budget and deadlines by comparing current indicators with the baseline.