ABSTRACT
In commencing this chapter it has to be said that the first rule of estimating is that there are no magic answers! Furthermore, the second rule of estimating is that poor estimates are everybody’s problem! The estimate of project costs is therefore obtained – not by a guess – but from a quantified assessment of the resources required to complete part, or all, of the project. This typical process approach will provide a robust estimate based on previous experience, recorded assumptions and a formula or analogy. Where possible it should be supported by a stated rationale and be achieved by using a range to match any project uncertainty. Additional estimating may then need to be undertaken on areas of the project where wide cost ranges are identified.
