Introduction

Estimating. Nothing else symbolizes the challenges of project management better. Negotiate with senior management and customers to prevent “ball park” estimates from becoming your targets; team with subject matter experts (SMEs) and knowledge workers to develop accurate estimates for work that has never been done in these conditions, with these tools, by these people; assess your risks; educate stakeholders on the estimating process; and continuously manage the time-cost-quality equilibrium. Plus, you likely must do all of this in an organization that has not made the investment to improve estimating accuracy. Is it any wonder we love this job? For most people and most organizations, you would need a moving truck to carry all the baggage that comes along for the ride when estimating is discussed.

The baggage accumulates from political battles, misunderstandings, a sense of no control, and past troubled projects. As a result, there are complete educational courses and books in the marketplace that cover nothing but estimating—not to mention the many reputable therapists that can improve your emotional and spiritual well-being (just kidding; it’s not that bad).

The shows you how to leave that moving truck behind and take control of the estimating process. It can be done. First, we review how estimating the work fits in with the overall schedule development process and how it is an integral part of how we manage risk on the project. Then, we examine the key estimating techniques and methods and how to use them. And finally, we discuss the common reasons for poor estimates and review the golden guidelines of estimating. This will enable you to improve your estimating accuracy and get it right the first time.

 Note

Accurate estimates build the foundation for a realistic schedule and an accurate project budget.