1. 1- COST ESTIMATES  

Cost estimates include quantitative assessments of the probable costs required to complete project work,

as well as contingency amounts to account for identified risks, and management reserve to cover unplanned work.  

  1. 2- BASIS OF ESTIMATES  

The amount and type of additional details supporting the cost estimate vary by application area.

Regardless of the level of detail, the supporting documentation should provide a clear and complete understanding of how the cost estimate was derived.

Supporting detail for cost estimates may include:  

  • * Documentation of the basis of the estimate (i.e., how it was developed),  

  • * Documentation of all assumptions made,  

  • * Documentation of any known constraints, Documentation of identified risks included when estimating costs,  

  • * Indication of the range of possible estimates

  • (e.g., US$10,000 (±10%) to indicate that the item is expected to cost between a range of values), and  

  • * Indication of the confidence level of the final estimate.  

  1. 3- PROJECT DOCUMENTS UPDATES  

Project documents that may be updated as a result of carrying out this process include but are not limited to:  

  • * Assumption log.

  •  During the Cost Estimates process, new assumptions may be made, new constraints may be identified,

  • and existing assumptions or constraints may be revisited and changed.  

  • * Lessons learned register. 

  • The lessons learned register can be updated with techniques that were efficient and effective in developing cost estimates.  

  • * Risk register.

  •  The risk register may be updated when appropriate risk responses are chosen and agreed upon during the Estimate Cost process.