5 Inputs Of Estimate Costs For Projects

5 Inputs Of Estimate Costs For Projects


In my previous article, I have started a discussion about the cost management plan for projects. I have tried to define cost management and explains some of the factors that you need to take into consideration when you want to define a cost management plan for projects. In this article, I want to look at some of the inputs of estimate costs for projects. Follow me as we will be looking at that together in this article. 

Inputs Of Estimate Costs For Projects

Now the inputs…


#1 Project Charter

The project charter provides the pre-approved resources from which the detailed project costs are developed. The project charter also defines the project approval requirements that will influence the management of the project costs. 


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#2 Project Management Plan

Under the project management plan, we have two vital documents that are needed to estimate the cost management plan. 


Schedule management plan: The schedule management plan establishes the criteria and the activities for developing, monitoring, and controlling the schedule. The schedule management plan provides processes and control that will impact cost estimation and management.


Risk management plan: The risk management plan provides the approach for identifying, analyzing and monitoring risks. The risk management plan provides processes and controls that will impact cost estimation and management.


#3 Enterprise Environmental Factors

The enterprise environmental factor that can influence the Plan Cost Management process includes organisational culture and structure that can influence cost management. Market conditions describe what products, services, and results are available in the regional and global markets. 


It also includes currency exchange rates for project costs are sourced from more than one country. It also includes published commercial information such as resource cost rate information that is often available from commercial databases that track skills and human resource costs and provide standard costs for materials and equipment. 


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It also includes a project management information system which provides alternative possibilities for managing costs as well as productivity differences in different parts of the world which can have a large influence on the project.


#4 Organisational Process Assets

The organisational process assets that can influence the plan cost management process includes: financial control procedures which include time reporting, required expenditure and disbursement review, accounting codes and standard contract provisions. It also includes historical information and lesson learned repository, financial database and existing formal and informal cost estimating and budgeting-related policies, procedures and guidelines. 


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Adeniyi Salau

Adeniyi Salau Scrum Master Certified , CCNA R&S , BeingCert and Scrum Certified Digital Marketing Professional, CEP, MOS, MCP, CSCU (Project 2016), Microsoft Certified Security and Networking Associate is a Google and Beingcert Certified Digital Marketer, Project Manager and SEO Expert of repute with about a decade of Blogging and online marketing experience. He is always ready to share his experience with others.

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