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Project Management & Agile · Foundational

Estimate Costs

Process of developing an approximation of the monetary resources needed to complete project work.

Definition

Uses analogous, parametric, bottom-up, and three-point estimating plus reserve analysis and cost of quality. Outputs include cost estimates and basis of estimates.

Example

Each work package estimate includes labor, materials, and a contingency for its risks.

Exam tip

Basis of estimates documents assumptions, constraints, and confidence level.

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