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Project cost estimates

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Adel Almufaiz Riyadh, Saudi Arabia
hello everyone
I would like to discuss cost estimate types as I have some confusion.

1- In PMI perspective, what are the cost estimate types? and what is the range for each?
2- If we use more than one estimate as the project progresses, does each estimate is considered a cost baseline when we apply it? and if this is true, do we need a change request to change the cost baseline for each new and more accurate estimate?
The confusion is because scenarios such as: for external project, a company submitted a propsal in reply to an RfP (fixed price contract). what cost estimate they use.
Another scenario is for internal project, the company allocated budget for the project based on an initial estimate (-20% to +20%), why to consume time and efforts to do more accurate estimate?

Based on the above why and what the benefits of doing more than one cost estimate?

I'm sure there are applications to do so, but i can not think of one.

Thank you.
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Mario Trentim CEO| PMO Global Alliance Sao Jose Dos Campos, Sao Paulo, Brazil
Adel, the PMBOK Guide provides a couple of tools for cost estimating. However, there is no information on ranges. In the literature, there are rules of thumb and suggested ranges.

A few references:
http://www.dot.ca.gov/hq/oppd/pdpm/chap_pdf/chapt20.pdf
http://pmbook.ce.cmu.edu/05_Cost_Estimation.html
http://www.dummies.com/careers/project-man...-project-costs/
https://www.safaribooksonline.com/library/...79/sub7.2.xhtml
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Sergio Luis Conte Helping to create solutions for everyone| Worldwide based Organizations Buenos Aires, Argentina
My recommendation is reading carefully the Project Cost chapter inside the PMBOK. I beleive that, if you have read it, then you did not understand it. Sorry if I am wrong.
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Adel Almufaiz Riyadh, Saudi Arabia
Thank you Mario and Sergio. I'll read and reread the references. However, I think that my question needs rephrasing, I'll leave that for later. Thank you again.
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Sergio Luis Conte Helping to create solutions for everyone| Worldwide based Organizations Buenos Aires, Argentina
About the range, take a look to Barry Bohem´s "Cone of Uncertainty". That was intended for software but is used from years in lot of other fields. In fact, time ago, the PMBOK has references to some of the ranges expressed by Bohem inside the Cost chapter.

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