Estimate Costs

Inputs Tools and Techniques Outputs
  • Scope Baseline
  • Project Schedule
  • Resource Rates
  • Resource Calendars
  • Risk Register
  • Analogous Estimating
  • Parametric Estimating
  • Bottom-Up Estimating
  • Three-Point Estimating
  • Activity Cost Estimates
  • Basis of Estimates
  • Project Document Updates

Details:

Scope Baseline: The scope baseline includes the project scope statement, the WBS, and the WBS dictionary. These documents provide a detailed understanding of the project deliverables, which is essential for accurate cost estimation.

Project Schedule: The project schedule provides information about the sequence and duration of project activities, which helps in estimating resource requirements and associated costs.

Resource Rates: Resource rates include the cost rates for labor, materials, equipment, and other resources needed to complete project activities. These rates are used to estimate the cost of each activity.

Resource Calendars: Resource calendars specify the availability of resources over time, including any planned resource vacations, holidays, or other constraints. Understanding resource availability is essential for estimating resource costs.

Risk Register: The risk register contains information about potential risks that may affect project costs. Risks can impact resource availability, productivity, and material prices, all of which can affect cost estimation.

Analogous Estimating: Analogous estimating, also known as top-down estimating, involves using historical data from similar projects to estimate project costs. This technique is useful when detailed information is not available.

Parametric Estimating: Parametric estimating involves using statistical relationships between historical data and other variables (such as size, weight, or complexity) to estimate project costs. This technique is more accurate than analogous estimating but requires specific data and parameters.

Bottom-Up Estimating: Bottom-up estimating involves estimating the costs of individual project activities and then aggregating them to determine the total project cost. This technique is more accurate but also more time-consuming than other estimating techniques.

Three-Point Estimating: Three-point estimating involves using three estimates for each activity: optimistic (O), pessimistic (P), and most likely (M). These estimates are then used to calculate a weighted average, such as the PERT (Program Evaluation and Review Technique) estimate.

Activity Cost Estimates: Activity cost estimates provide the estimated cost for each project activity, based on the resources required and their associated costs. These estimates are used to develop the project budget.

Basis of Estimates: The basis of estimates document provides the rationale behind the cost estimates, including the assumptions made, constraints identified, and any supporting documentation or data used.

Project Document Updates: Updates to project documents may include revisions to the activity list, activity attributes, and resource calendars to reflect the estimated costs for each activity.