7.2 Estimate Costs
Process Definition
Cost estimating is required to approximate the finances required to complete a project. Trade-off studies may be required to identify the most cost-effective approach. The primary outputs of this process are activity cost estimates and basis of estimates.Process Assessment
This process can be very time consuming, but it is critical to get this right if the performing organization is at all cost sensitive. Getting cost estimates for each WBS element and/or schedule activity must be done if an accurate project cost is to be developed and tracked.
Figure 16. Estimate Costs: Inputs, Tools and Techniques, and Outputs. Reprinted from "A Guide to the Project Management Body of Knowledge (PMBOK Guide), 5th Edition" by Project Management Institute, 2013, p. 200. Copyright 2013 by Project Management Institute, Inc. Reprinted without permission.
- Tolstoy Project - Parametric Estimating: This PMGT 501 homework assignment illustrates the tools and techniques of parametric estimating for project cost estimating.
- Expert Judgment: This cost estimating essay covers a range of the tools and techniques used in cost estimating.
- Fence Activity Cost Estimates: Activity cost estimates for a Backyard Privacy Fence project. This document includes several basis of estimates, one of the outputs of this process.