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CHAPTER 6
Estimating Project, Times and Costs
Copyright © 2013 McGraw-Hill Education (Australia) Pty Ltd Pearson, Larson, Gray, Project Management in Practice, 1e
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Learning Elements
6.1 Understand that estimating can be carried out to differing levels of detail and accuracy.
6.2 Apply any number of estimating techniques to assist in scoping and planning a project.
6.3 Understand the concept of contingency versus padding.
Copyright © 2013 McGraw-Hill Education (Australia) Pty Ltd Pearson, Larson, Gray, Project Management in Practice, 1e
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RECAP. Leading on from Step 4. Estimating: Moving towards a draft budget and schedule
ESTIMATING
The journey from WBS to estimating and the creation of the budget schedule and resource matrix
Copyright © 2013 McGraw-Hill Education (Australia) Pty Ltd Pearson, Larson, Gray, Project Management in Practice, 1e
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Estimates are needed to:
– Support good decisions
– Determine whether the project is worth doing
– Determine how long the project should take and its overall cost
– Schedule work
– Determine the resource required (human and other)
– Develop time-phased budgets (cash flow) – Establish the project baseline
– Determine how well the project is progressing
Copyright © 2013 McGraw-Hill Education (Australia) Pty Ltd Pearson, Larson, Gray, Project Management in Practice, 1e
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What is being estimated?
• Resources • Durations • Costs
Copyright © 2013 McGraw-Hill Education (Australia) Pty Ltd Pearson, Larson, Gray, Project Management in Practice, 1e
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