ABSTRACT
The foundation of cost estimation is assessing which resources are needed in order to deliver the expected outcome, and this is based on the breakdown of the project into work parts. Budgets are as varied as they are numerous, and they can serve multiple purposes. Rough estimates at the earliest stages of project planning give an indication of the scale in terms of the cost of a project. Evaluating the cost of resources simply involves multiplying together the number of units and unit prices. Attention is drawn to the item contingency which has been added before the total cost was calculated. The breaking down of the project into tasks is convenient in order to divide it into units that can be defined, assessed, and managed. When the direct and indirect costs of projects have been estimated, there is then a need to consider when the funding is needed to ensure the availability of financial resources at the right time.
