Hassaan MasoodCivil Engineer| Looking for new opportunities in project management!Surrey, British Columbia, Canada
Practically speaking, what is the difference between estimating cost and determining budget? My understanding is that estimate cost means determining project cost by accumulating control accounts. It is done by project team. On other hand, determining budget is to finding how much money you have to complete the project. It is done by sponsor. What are your thoughts on it? Saving Changes...
A cost estimate is a quantitative assessment of the likely costs for resources required to complete the activity. Cost estimates may include contingency reserves to account for cost uncertainty.
Determine Budget is the process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.
The cost baseline is the approved version of the time-phased project budget that includes contingency reserves, but excludes management reserves. Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
The answer is inside the definitions of both terms. Take a look about the defintions of cost and budged. Take a look to @Wilko pointed out above too. Saving Changes...
To put thing simple, Estimate Cost is all cost involved in all the efforts needed to complete the project. The output i.e cost baseline includes contingency reserve, it represent the fund the PM has authority to manage and control over.
The Cost Budget is how much money the company should have available for the project considering the management reserve (not within PM control).
As mentioned above, PMBOK shall have more precise definition.
