Importance of cost estimation

Project planning is an important step towards cost estimating. Proper and accurate planning will reveal tasks, resources required. Durations and other factors needed during a cost estimation process. Before you can begin with your cost estimation, the project managers should have detail information about the tasks.

The next important thing that you need to consider is the accurate information on the resources needed for your project. You will not be able to estimate your resources once you have decided on your project duration. Procurement resources such as space and technology are also considered under cost estimation. After determining the number of resources and the time needed for completion. You will be able to conclude on the cost associated with the project. Now you are almost done with the project planning, and you can move on with the next step which is the main part.

Cost estimation can be done either manually or using a software. One such method is estimation done by analogy. This method looks into similar projects and compares the current project estimate and then projects its cost estimation. The next method depends upon expertise. This includes an expert who is familiar with this project type. He will perform an analysis and then start with the estimation depending upon her knowledge. The third method depends upon the use of formulas and algorithms. Some of the examples for this method include PERT formula and summing the estimates for various tasks.

You need to fight with this tough economic condition to get a project for your business. The important part is you have to focus on your target date for delivery. Everything determines your cost. Every project, whether external or internal has the cost implications to the company’s bottom line profit, cash flow and overall finance. Poor knowledge of the tools and techniques would end up in bad cost management. This is where workshops come into play.

The trainer will guide you on the basics of cost estimating and provide you with techniques, knowledge and practical implementation needed for supporting participants in managing the project cost successfully. They will ensure that your business give good returns with their training concepts.

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