ABSTRACT
The ability to estimate is a learned skill that requires experience and the relevant technical and business knowledge. A first step is to acknowledge the anxieties that accompany the preparation of an estimate. This challenges the firm to build a culture that respects a professional approach. The firm needs a formal estimation practice, defined accountabilities, and a supportive environment. Every project needs two estimates—top-down and bottom-up. The perspectives of the estimator and the sales executive provide some insights for the services firm wishing to build an effective estimation practice. Positive behavior is the key to building a positive corporate culture, and in the case of estimating, it should be made explicit in a written practice guide. The firm who embeds continuous improvement into their culture will win the game. The main components of a work effort estimate template should include deliverables, activities, effort estimate, overhead, cost estimate, contingency, assumptions, adjustments, and sign-off.
