Sab8#68:_Estimate Cost

Sab8#68:_Estimate Cost

1. Cost Management Plan

2. Human Resource Management Plan

3. Scope Baseline

4. Project Schedule

5. Risk Register

6. Enterprise environmental factors EEF's

7. Organizational Process Assets OPA's

8. Project management estimating software

9. Vendor bid analysis

   • More than one contractor bid on the job

10. Reserve analysis

    • Putting some cash away just in case

11. Cost of quality

    • how much money it takes to do the project right

12. Group decision-making techniques

13. Variable Costs

    • Change with the amount of production or the amount of work
      • Cost of material, supplies and wages

14. Fixed Costs

    • Do not change
      • Cost of set-up, rent, utilities

15. Direct Costs

    • Are directly attributable to the work on the project
      • Team travel, team wages, recognition, cost of material used on the project

16. Indirect Costs

    • Are overhead items or costs incurred for the benefit of more than one project
      • Taxes, fringe benefits and janitorial services

17. Project management costs

18. Determining Resource Cost Rates

19. Accuracy or Estimates

    • Rough Order or Magnitude (ROM) Estimate
      • Made during project initiating -25 to +75 percent
    • Budget Estimate
      • Made during project planning -10 to +25 perecent
    • Definitive Estimate
      • As the project progresses, the estimate will become more refined -5 to +10 percent

20. Activity cost estimate

21. Explanation of how those estimates were derived

22. Updates to the risk register and other project documents

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