The more accurate your estimate of project cost is, the better able you will be to manage your project’s budget. Ask your team to be a part of the estimation … a new estimate at completion (EAC), Estimating Activity Durations: Definition, Methods, Practical Uses, a In general, analogous estimates are used if a project has access to historical data on similar types of work while the details and resources for more accurate estimates in the current project, such as parametric or bottom-up estimating, are not available. Cost estimates are the basis for allocating However, in the estimate costs process, you make forecasts for the costs of each activity. Whichever estimation type you choose, tracking progress with a cloud-based project management software like Clarizen can be a helpful way to keep everything in order. Estimating costs is one of the most important processes in project management. Values of previous similar projects, Historic or market data: Parameters and values of Its accuracy influences the team's workflow, and, as a result, the quality and duration of the project. Definitive estimate with an This is done by determining an estimate completion and thus becomes the new cost baseline of a project. The Estimate Costs process in the Project Cost Management knowledge area is critical to delivering a project on-budget. Summary. Vendor Analysis. Definitive estimates will usually require techniques such as analogous, bottom-up and parametric estimating that may only become available in later stages of a project. In the field of project management, cost estimation is the process of estimating all of the costs associated with completing a project within scope and according to its timeline. Estimating cost is an important process in project management as it is the basis for determining and controlling the project budget. Estimating is generally where all the cost data is generated for the project. Therefore it is one of the most common project cost estimation methods. Normally, project managers use -5% to +10% of range from actual. By Meyer, Werner G. Estimation is at the heart of most project disciplines, and project cost and time overruns can often be traced back to inaccurate estimates. and. Another consideration concerns the more accurate estimation techniques (such as parametric estimating) may also not be available due to a lack of data. the project when more information is available, this order of magnitude at the lowest level of the work breakdown structure (WBS), e.g. We hope that it will be useful for candidates who are seeking to make a carrier in the field of project management. As can be seen, cost estimation forms a pylon in the cost management process and as a result in project management. This can for work packages Costs are estimated for the first time at the beginning of a project or even before a project has started. Initial, high-level estimates are often used in the earliest stages of project planning and can determine whether or not a project is ultimately pursued. Bottom-up estimation analyzes each work package from the lowest level to the uppermost level. range of possible outcomes. The execution or implementation of guiding principles comes in many forms and permutations. or algorithmic model that may consider multiple quantitative and qualitative Good project management process—estimation techniques included—are built on solid relationships. Project’s total cost is the sum of all work packages and components. Making proper estimations, creating project budgets and controlling costs is essential to project success. Estimate Costs is the first process in the Project Cost Management knowledge area. Based on these 3 points, a weighted average It can be used with a simple Three-point estimating is a technique that Cost Benefit Analysis (also known as Benefit Cost Analysis) is an important concept in project management. with an accuracy of -25% to + 75% (other frameworks quote a range of +/-50%) Read this article for more details on the ROM and the differences between ROM and definitive estimate. introduced in this article. Conference Paper Estimating, Organizational Project Management 13 May 2016 . The definitive estimate is determined in started. There are many different types of estimation techniques used in Project Management with various streams like Engineering, IT, Construction, Agriculture, Accounting, etc. There are also industry-specific types of estimates such as design and Expert Judgment can be provided by a member or multiple members of the project management team. Want to be even better at estimating projects? In practice, these estimates are often performed Back in 2001, the National Audit Office found that bad cost estimation was the reason for 70 per cent of public sector construction project failures, or blown budgets. The first point to estimate cost is during the initiation phase, e.g. A technique to estimate all costs associated with performing an enterprise change project or product development activity. Therefore, fundamental knowledge of cost estimation is important for every project managers. In addition, cost estimates are input parameters for the earned value and variance analyses as well as forecasting of project costs. Standardized structures for the estimates 5. Estimating. Cost estimates are obviously addressing the budget The most effective project cost estimation occurs from a combination of speculation and data-based charting. The methods introduced in this article are tools and techniques of the “Estimate Costs” process that is part of PMI’s Knowledge Area “Project Cost Management” (see PMBOK, 6th edition, ch. parameters for detailed regression analyses. currency amounts are not applicable or irrelevant. Customers realize that every penny saved is a penny earned! (Re-)estimating the efforts needed to generate the deliverables of a work breakdown structure (WBS) by asking those responsible for work packages and activities to estimate their resource requirements. Bottom-up estimating is a technique in project management for estimating the costs or duration of projects and parts of a project (PMBOK, 6th edition, ch. • Parametric Estimating Being able to make accurate cost estimates is key to delivering a solid project plan. If, for instance, the cost of implementing This technique does not provide a certain estimation because it is used when there is little information regarding the current project and is limited to the project manager’s and cost engineer’s experience. Cost overrun is a chronic problem across most projects. • Expert Judgment This section provides an overview of the Tools and Techniques for Estimating Project Cost, differences between ROM and definitive estimate, calculate The estimation of costs is also necessary to Project cost estimation management is an important and key step in project estimation. You will find more details on the measures and the techniques in this article. Cost estimation forms a pylon in the cost management process and as a result in project management. Definitive Estimate, Estimate to Complete (ETC) and Estimate at Completion Solid working relationships tend to make the project estimation process easier, because the more you know about someone’s work and process, the easier it is to create estimates for their work. point is usually not very detailed, the project manager will likely end up producing as in the business case of a project. sponsor(s). Now let’s discuss project cost estimation methods in detail. Project management estimation means looking through all available data to propose the time, cost, and resources needed to complete a project. The Project Management Body of Knowledge lists the rough order of magnitude Most project management knowledge has a chapter on cost estimating and cost planning, and the need to control this scarce resource. In this article, we have discussed the techniques of cost estimating as suggested by the PMBOK. Cost estimation in project management is the process of forecasting the cost and other resources needed to complete a project within a defined scope. How well do you understand cost estimation in project management? Estimate Costs is the process of determining costs of each activity including material costs, equipment costs, labor costs, overhead costs as well as indirect costs. Therefore they can be used when there is little information regarding the project. Costs are estimated at different points in time throughout the project. Project cost estimation management is an important and key step in project estimation. preliminary estimates and budget estimates as further gradations of estimate 7.2.2 of PMI’s on these techniques to find further explanations and practical examples. Parametric estimating is a statistical approach to determine the expected resource requirements. techniques, supplemented with examples and practical considerations. According to the PMBOK, there are 2 types (EAC). A technique to estimate all costs associated with performing an enterprise change project or product development activity. tools and techniques for estimating project costs. For instance, if the earned Want to be even better at estimating projects? The PMBOK states that the process is performed “periodically throughout the project as needed” (source: PMBOK, 6th edition, ch. And the project budget shows the total cost allocated by the client. Also, stakeholders, customers, technical organizations and professionals can provide their knowledge. initial rough cost estimate is usually included in the project charter as well Let’s look at each part of an estimate individually. Project management is the practice of initiating, planning, executing, controlling, and closing the work of a team to achieve specific goals and meet specific success criteria at the specified time. There may be differences in their bids but you can get an idea … of estimates. Three Point Estimating Technique is a useful technique which helps to increase the accuracy of cost and time estimates. accuracy range of -5% to +10%. This means that you will need to pull together, the cost of planned and ongoing projects. There are different methods and techniques to achieve an accurate cost estimation, however, we know for a fact that cost estimation accuracy changes through the project lifecycle. Cost forecasts and projections are used to establish a set of metrics against which project success will be measured, and to communicate work progress to the stakeholders at any given point in time. The more accurate your estimate of project cost is, the better able you will be to manage your project’s budget. There are some tools which can be used to perform the project cost estimation, such as cost estimating software application, spreadsheets, simulation and statistical tools. (adsbygoogle = window.adsbygoogle || []).push({}); • Analogous Estimating Besides being an estimation technique on its own, expert judgment is also inherent to the other estimation techniques. breakdown structure and aggregating the resource requirements for the whole 7.2). This means that the estimation is done for work packages (some might suggest activities though) which are the lowest and most detailed level of a work breakdown structure (… Time is Money. Now we’ll analyze 5 tools to estimate costs in project management. Know the importance of cost estimation in project management to create correct project budgets. Click on the links to the detailed articles In a world of limited funds, as a project manage you’re constantly deciding how to get the most return for your investment. used if the budget needs to be revisited and replaced with a new estimate at A statistical relationship needs to be evaluated between the historical data and other variables. Some projects use additional, sometimes industry-specific types This process uses almost the same tools as expert judgment, analogous estimating, three-point estimating as in the estimate activity duration process. It provides more accurate results than the analogous estimation, expert judgment, and parametric estimation. categorized as a gross value estimating approach. Bottom-up estimation refers to a technique that involves estimating the cost at a granular level of work units. Expert Judgment is a widely used cost estimation technique because of its simplicity. Estimate Costs. “Analogous estimating, also called top-down estimating, is a form of expert judgment.”. Cost estimation is the process of forecasting the project’s cost with a defined scope. It is the process of controlling and managing the cost of the entire projects effectively, The cost of the project can be estimated with the various project sources such as . In this article, we discuss the methods and their key aspects of cost estimation in project management. • Bottom-up Estimating and techniques. through a project, a so-called estimate to complete (ETC) is determined. For instance, building a highway in a mountainous region likely produces a higher cost per mile than in a flat area. An accuracy of estimate is depended on the details of input information. Simply put, the analogous estimation provides quick results. Cost estimation methods Like analogous estimating, expert judgment, parametric estimating, bottom-up estimating, three-point estimating, Data analysis, project management information system, vendor bid analysis and project management estimating software usually leverages on bottom-up estimates, analogous or expert estimates. Know the importance of cost estimation in project management to create correct project budgets. of cost estimates: Some sources also list so-called Underestimate the costs of your project, and it could be dead in the water. accuracy, the project phases in which they are used as well as the available tools The cost estimate creates the baseline of the project cost during the different stages of its development. These methods refer to chapter The importance of cost management in projects and the listed cost management techniques is almost self-explanatory – when you aim to manage your cost to adhere to the set project budget, you’re essentially letting the set budget guide your decisions. Analogous estimating is Cost Estimation in Project Management. The approximate total project cost, called the cost estimate, is used to authorize a project’s budget and manage its costs. The term bottom-up estimating gives a hint about the underlying concept: costs, durations or resource requirements are estimated at a very granular level. How Project Management Software Improves Productivity, Bottom-Up Estimating – Definition, Example, Pros & Cons, Performance Prism for Performance & Stakeholder Management, Balanced Scorecard in Project Management – Uses, Pros & Cons, Number of Communication Channels (+ PMP® Formula & Calculator), How to Do Analogous Estimating – an Illustrated 5-Step Guide, Historic or market data: and assignment require some stakeholder It is a definite technique to identify both cost and time for a current project using data from past projects with duplicate parameters. Following are the most common and popular cost estimation methods: Expert Judgement Method. There are a lot of things that are needed to ensure that a project is carried out smoothly, and as it is common with every resource, there is an expense that needs to be incurred. Underestimation of costs and resources makes a contribution to project failure. Availability of valid data 4. A reliable cost estimates are necessary for responsible management at every stage of the project. Cost estimation is a repetitious process of establishing an approximation of the monetary resources required to complete project activities. Project Cost Management is a multi-faceted discipline involving estimating, budgeting, planning, cost control and benchmarking to measure cost and productivity through the full life cycle of enterprise level projects. In fact, the process “determine budget” uses a technique called It is based on the assumed or proven relationship of parameters and values. Time is Money. Without a cost estimate, it would be impossible to prepare a business plan, establish detailed budgets, predict resource requirement or control project costs. The content pertains to the Estimate Costs process of the Project Cost Management knowledge area. the course of the project when more information and resources for accurate Project cost estimating is the process of approximating how much it will cost to complete the project activities. estimates, Rough order of magnitude (ROM) For these documents, a project manager has to determine the amount of resources that is required to complete the project. Project Management; How to Estimate Project Costs; How to Estimate Project Costs . project is defined as being subject to at least three fundamental constraints, earned value and variance analyses as well as forecasting of project costs, PMI’s Cost estimating is one of the most important steps in project management. The cycle time, number of people, and cost per person are used. Medium Projects – project management costs fall between $9,000 (or $15,000) and $90,000 ( or $150,000). Estimate costs is one of the most important processes in project management. In project management, project cost management is a major functional division. Clear identification of tasks 2. The Estimate Costs process in the Project Cost Management knowledge area is critical to delivering a project on-budget. 7.2.2.4). delivered by highly skilled and experienced resources while the current team is Estimate costs process in project management is the practice of estimation of the monetary resources required to complete tasks and project activities. Expert judgment, analogous estimation, three-point estimation, parametric estimation, and bottom-up estimation are the techniques used in this process. Put another way, the United States Government Accountability Officedefines cost estimation as “the summation of individual cost elements, using established methods and valid data, to estimate the future costs of a program, based on what is known today.” It further defines the basic characteristics of credible cost estimation as including: 1. IT development projects in complex IT architectures or systems tend to require more resources than a less complex environment. This requires a certain level of familiarity with the subject of a project and its environments such as the industry and the organization. To Complete Performance... Project managers often wonder how much money they will spend to complete the remaining project works. However, obtaining and aggregating these granular estimates normally requires some resources and can potentially become a political challenge, especially in large or complex projects. In this technique, all the project scope is divided into smaller work packages and the cost of each work package is estimated. a project as well as among its stakeholders. management: asking those project team members who are operationally in charge involvement, communication and, in many cases, their approval. Although it is a time consuming and costly technique, it provides the most accurate estimation. The most effective project cost estimation occurs from a combination of speculation and data-based charting. This is a key concept for your PMP preparation. Estimate Activity Durations à Estimate the time each activity will take to finish. While there is no clear rule on who should In this article, estimation tools, such as Analogous Estimating, Resource Cost Rates, and Bottom-up Estimating are explained. or even activities. Read on to learn the details of these Parametric Estimation Technique can be considered as a consolidation of historical information and statical data. value management measures that are used for controlling project cost Estimating is generally where all the cost data is generated for the project. On the other hand, you can use the bottom-up estimation if the project information is adequate. If the budget has to be revisited part way In a world of limited funds, as a project manage you’re constantly deciding how to get the most return for your investment. Reliable cost estimates are necessary for all projects. 4 min read Modified: Jul 22, 2020. This type of software is especially useful for looking at cost estimation alternatives. What Are Leads and Lags in Project Management? Such cost estimates are often expressed in Cost estimation is key to delivering a solid project plan. (Project cost management has been practiced since the 1950s.) For instance, if the comparability of previous work and the current project is assessed or adjustments to parametric estimates are determined. Therefore, budget determination The implication of Cost Estimation and Budgeting in Project Management varies with the type of project undertaken. You can use it for many purposes like if an organization wants to know the cost to quote the correct price when bidding for a project. Cost estimation can be performed using a bottom-up or top-down approach. However, in the estimate costs process, you make forecasts for the costs of each activity. Estimating cost is an important process in project management as it is the basis for determining and controlling the project budget. There are many tools, techniques and formulas used to forecast the cost performance of a project. The reason why a budget is important in project management is that organizations have only so much money to invest in each project. schedule and a revisiting of the overall budget can be inevitable. • Pessimistic Estimate: Assuming everything goes wrong. Costs are estimated for the first time at the beginning of a project or even before a project has started. But the process of estimation is often subject to biases by the estimator. See below as an example. 7.2). TheUS GAOdefines cost estimation as “the summation of individual cost elements, using established methods and valid data, to estimate the future costs of a program, based on what is known today.” The PMBOK defines the cost estimation process as “the process of developing an approximation of the cost of resources needed to complete project work.… This technique is suggested by the PMBOK (ch. This is because a a rough order of magnitude estimate rather than a definitive estimate. completion. currency units. Thus, this approach to estimating costs often comes with significantly higher accuracy than top-down estimations. Project estimation process is one of the most important stages of the project management. The cost estimate is usually given during the project development stage and it provides a prediction to the entire cost of the project based on available data. Project managers must be experienced in project cost management tools and techniques in order to manage costs variances. Cost estimation is key to delivering a solid project plan. Estimation requires human involvement to create a… Delivering projects on-budget will always be a key success factor for a Project Manager. For example, you can use analogous estimation when there is little information for the project. types. In the process of cost estimation, the Project Cost Engineer uses either one or the combination of the following tools and technique: Contents:Methods of […] • Optimistic Estimate: Assuming everything goes as planned. similar projects, Experts estimate the resources needed to complete the work in scope, either as a top-down or a bottom-up estimate, Adoption and adjustment of historic values for In the case of a project, it helps the project manager estimate what the project will cost and set in place controls by which they can reduce the chance of the project going over budget. and techniques which typically include. After all, your goal in studying for the PMP is not only to pass the exam but also to sharpen your project management skills. Analogous estimating analyzes a similar project completed in the past and makes a rough estimation for the current project by the use of this past project’s data. Project Management Software. project or parts of a project, Three-point cost estimates (optimistic, pessimistic and most likely) are determined using one of the previously mentioned techniques, that are then transformed into a weighted average (based on triangular or PERT/Beta distribution), Although cost of quality is not a generic estimation technique on its own, it can provide input for the other estimation techniques. This is a key concept for your PMP preparation. A cost estimate establishes the base line of the project cost at different stages of development of the project. similar types of work (top-down), Using the historic cost per parameter unit to Cost Estimation Methods. bid estimates in construction projects (source). budget to work packages and deliverables which can be politically sensitive within Simple examples are the building cost per square foot in construction projects or the implementation cost per data field in IT projects. There are different types of cost estimates. 1. A cost estimate at a given stage of project development represents a prediction provided by the cost engineer or estimator on the basis of available data. Estimate costs process in project management is the practice of estimation of the monetary resources required to complete tasks and project activities. Cost control is making sure you stay within the budget set during the cost estimating and cost planning processes. And the project budget shows the total cost allocated by the client. 4.1.2.1) as a way to produce a cost estimate. Customers realize that every penny saved is a penny earned! At that time, estimates are often performed top-down due to a lack of team members. When using a bottom-up approach, the costs are calculated on a unit level, then rolled up to the top level. Product Life Cycle and Project Life Cycle, Enhance Risk Response vs Exploit Risk Response, To Complete Performance Index (TCPI) Examples, Estimate to Complete (ETC) Definition & Examples, Schedule Performance Index and Cost Performance Index, Direct Costs and Indirect Costs , Cost Classification, Cost Benefit Analysis or Benefit Cost Analysis. Provisions for program uncert… determines an amount of resources required to accomplish project activities A Cost estimate is a quantified expectation of how many resources are required to complete a project or parts of a project. If a previous project was When using a bottom-up approach, the costs are calculated on a unit level, then rolled up to the top level. This is one of the reasons why some companies omit the process of cost estimation in project management since Agile methodologies entail shorter sprints, well-defined deliverables, and regularly updated backlogs. On professional services projects or any external customer projects, teams want to ensure that their costs represent value for money for their customers. The historic values are adopted for the current work and can • Three Point Estimating. estimates are available. Although it is time-consuming, it provides the most accurate estimation. For instance, you will estimate the cost of a formwork activity in a construction project. Project cost estimation and budgeting, along with planning, become more encumbering in the realm of vigorous markets and agile custom app development projects. the techniques that provide the most accurate cost projections. The scope will also define any constraints like date, resources or budget. of the respective work packages or activities to estimate there on work. understate the estimated cost. In this article, examples of Analogous Estimating, Resource Cost Rates, and Bottom-up Estimating are provided. initiation phases where a ballpark figure is sufficient to get a project A cost estimate establishes the base line of the project cost at different stages of development of the project. As it is mentioned in the second paragraph there are several methods and technics for cost estimation and it is important to determine which method is suitable for your cost estimation purpose. In the initiation phase, the rough order of magnitude (ROM) is often the only type of estimate that can be obtained. a current project. A company must consult individuals or groups that are experts in the field in which the company operates, or the project focuses on. Delivering projects on-budget will always be a key success factor for a Project Manager. On professional services projects or any external customer projects, teams want to ensure that their costs represent value for money for their customers. form of values and parameters to determine the expected resource requirements of Bottom-up estimating is the process of estimating every single activity and rolling them up into an overall project estimate. to complete (ETC) which is used to calculate Both types differ in respect of their Usually the cost is measured in currency such as the dollar, euro, or yen.But in some situations it could be measured using other units, such as staff hours.. [ Cost Management ] In brief, the definition of above processes can be understood as – Estimate Activity Resources à Estimate the resources (i.e., people, material, machines, and supplies) required to perform each activity in the project. The cycle time, number of people, and cost per person are used. Cost estimating involves different tools Choosing the most suitable technique depends on the availability of project information. A cost engineering reference book has chapters on capital investment cost estimation and operating cost estimation. a project required 15 new data fields, the total cost of this part of the It is the process of controlling and managing the cost of the entire projects effectively, The cost of the project can be estimated with the various project sources such as . Estimation requires human involvement to create a… Being able to make accurate cost estimates is key to delivering a solid project plan. The expert judgment, along with the historical data, assists a great deal in cost estimation. indicate significant variances from the budget, a re-estimation of the cost and Solid working relationships tend to make the project estimation process easier, because the more you know about someone’s work and process, the easier it is to create estimates for their work. Project Cost Estimation is defined as the process of approximating the total expenditure of the project. If you or your team have experience with the kind of work that is in the scope of a project, you can use expert judgment to produce an estimate. • Most Likely Estimate: Assuming a normal case in which everything goes as usual. Complexities of projects and activities vary and may therefore require certain adjustments. forecast the resources and financial investment needed to execute a project successfully Typically, the project deliverables for estimating include a scope of work document, timeline, resource overview, cost estimates, and risks. determine the expected cost of the current project, Estimating cost at a granular level of the work Read this Estimating the rough order of magnitude at the beginning of a project. To illustrate this, consider the following three projects: Take this quiz and understand how to estimate your cost for each activity you undertake on the project. Simply put, it... A Complete Guide to Working Capital (WC) Working Capital Defined – During your business career, you have likely run... © 2018-2020 – ProjectCubicle Media. This is one of the most accurate techniques to estimate the cost of the project. In practice, this technique is employed with As the information that is available at that be performing this estimation, it seems to be a good practice in project Estimating Cost of a Project: Techniques and Examples, PMI’s Knowledge Area “Project Cost Management”, Rough Order of Magnitude vs. “cost aggregation” which directly refers to the outputs of the “estimate cost” In simple terms, estimation is the process of approximation. The cost estimate is usually given during the project development stage and it provides a prediction to the entire cost of the project based on available data. Note that the level of detail and granularity of the estimates usually increases throughout the project. If partway in a project it turns out that the budget baseline (based on previous estimates) cannot be met, a re-estimation of the project cost is required. Let us get a bit deeper with this. Why Is Cost Estimation Important in Project Management? If you add project control support to the total installed cost, your project management costs go up to 9-15%: Small Projects – project management costs fall between $9,000 and $15,000, or less. Summary. By Meyer, Werner G. Estimation is at the heart of most project disciplines, and project cost and time overruns can often be traced back to inaccurate estimates. In cost engineering, cost estimation is a basic activity. The input data can be obtained from Parametric and bottom-up estimates are usually The three-point estimation uses three estimates which are optimistic, pessimistic and most likely to calculate the average costs. In subsequent phases, costs are typically (re-)estimated if relevant new information and details become known or if changes to the project scope or timeline occur. Similar to analogous estimates, adjustments Project management estimating software includes cost estimating software applications, spreadsheets, simulation applications, and statistical software tools. Expert judgment can be applied to both bottom-up and top-down estimating. In order to be accurate, the type and nature of these reference activities must be comparable with the current project. They are commonly The certification names are the trademarks of their respective owners. Cost estimation methods Like analogous estimating, expert judgment, parametric estimating, bottom-up estimating, three-point estimating, Data analysis, project management information system, vendor bid analysis and project management estimating software This type of expert judgment can lead to comparatively accurate results. This technique uses an algorithm to calculate the cost of the activity considering the historical data and other project variables. However, other units such as man-days can also be used if the Bottom-up estimating is a technique in project management for estimating the costs or duration of projects and parts of a project (PMBOK, 6 th edition, ch. cost estimate is determined that overweighs the “most likely” point. pessimistic (worst case) and the most likely cost estimate. It involves determining the cost of conformance with certain quality standards compared with the cost of non-conformance and the long-term effects of short-term cost savings, Refined cost estimate and standard deviation of Cost estimating is one of the important processes in project management. A company must consult individuals or groups that are experts in the field in which the company operates, or the project focuses on. project would be 15 x $20,000 = $300,000. Then you will estimate the total man-hour for the new project’s formwork activity by using the past project’s performance and multiply it by the unit price. However, it does not provide a definite estimation. Let us get a bit deeper with this. This table compares the approaches to estimating project costs and highlights the differences between these techniques. article for further explanation and examples of this technique. Analogous estimating refers to the use of observed cost figures and related values in previous projects (or portions of a project). The expert judgment, along with the historical data, assists a great deal in cost estimation. Once you have completed your project estimate, it becomes a project budget if the client approves it. Cost estimating is one of the important processes in project management.
2020 cost estimation in project management