Project Estimation Techniques: A Quick Guide

Project Estimation Techniques: A Quick Guide

Project estimation techniques are tools that help project managers forecast cost, time and other variables as they relate to a forthcoming project. They include cost, time, scope, risk, resource and quality. The purpose of project estimation techniques is to help clients understand the investment necessary to deliver the project, and to sell the project to the client and convince them that they'll get a return on their investment. Additionally, project estimation techniques include a rough calculation of price, time or other measurable project aspects. These estimation techniques are necessary for clients, stakeholders and the project planning process because, without them, you're making a guess.

The triple constraint of cost, scope and time are the three main forces that impact any project. Cost is simply money, and forecasting how much the project will cost before execution is important to both the client and stakeholders. Time is the overall amount of time it will take to complete the project and accompanying tasks, and is vitally important for the project manager as they formulate the project plan and schedule. Knowing how much you'll need and when you'll need it is critical project estimates.