A blog that looks at all aspects of project and program finances from budgets, estimating and accounting to getting a pay rise and managing contracts.
Written by Elizabeth Harrin from RebelsGuideToPM.com.
Project estimating is something we have to do a lot. And being good at estimating generally means being accurate in the estimate. That doesn’t mean you have to get your budget figures defined to the nearest penny. But you do have to work out your numbers robustly and present them in a way that is clear to stakeholders. They need to understand how you are using the numbers and what they are looking at.
There are three ways to talk about the accuracy of estimates:
Rough order of magnitude
Budget estimate
Definitive estimate
Find out more about how these different types of estimates are defined and calculated using ranges in this short video.
Elizabeth HarrinDirector| RebelsGuideToPM.comLondon, England, United Kingdom
Tarik, I don't think the terminology matters very much. If you want to estimate from -15% to 50%, then as long as the people who are receiving the estimates know the range, you could do that.
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