Estimating a project involves predicting the amount and cost of resources required to execute the project. Using an estimate enables you to develop an idea of the final, required budget.
When estimating, follow these guidelines:
- Establish objectives.
Ask why the estimate is being prepared. What is the required accuracy? Who is the intended audience? When is the estimate needed?
- Determine details.
Gather the information needed to prepare the estimate and understand how the sponsor’s environment might have an impact on the estimate.
- Select the appropriate tool.
- Develop a strategy.
Identify the estimators, develop a detailed plan for gathering estimates, determine the type of estimating validation to be used, and review the history of similar projects.
- Prepare the estimate.
- Include contingencies associated with risk response planning.
- Validate and finalize.
Ask if this is an independent estimate or if it will be developed with detailed scrutiny of every aspect of planning and estimating work.