After you create an estimate, you use the estimate and add you profit to create your bid. Once you are awarded the project, you need to make a budget. What is the difference between your budget and your estimate, or should your estimate basically serve as your budget? Saving Changes...
Yes, your estimate is the budget for your project. Or you can re-estimate to increase profit (if the contracting authority does not track your budget spending -Fixed Price Contracts) Saving Changes...
Ahmed FathySenior Manager, Enterprise Project Management Office| Department of Education, Northern Territory GovernmentDarwin, Northern Territory, Australia
Hi kalyan parihari,
Both are financial values and the difference is the phase of the project.
So estimate will refer to an unapproved project normally and budget refers to approved project. However the numbers maybe identical or further elaborated based on more reviews of the total cost of the project.
It's a very good question; these are some of the most commonly misunderstood terms.
Estimate refers to approximation, and never a commitment. Also, estimate is always a range, and not a finite number.
But, the reality of life is you take the estimate to the client/project leadership in the form of finite number and with associated budget, then technically you are committing for the estimate.
At that time, the only way you can continue to refine your estimate is, if you have documented all the assumptions that goes in to the estimate. Saving Changes...
saurabh mahajanPMP, ITIL, PRINCE2| vodafonePune, Maharashtra, India
Your estimate can be basis for your budget. Budget is collection of all individual estimates for an activity on project. Changes to these estimates essentially means changing the budget baseline Saving Changes...
