What is the project estimate?
The project estimate is done in order to determine the total cost of the project. It is considered as one of the most important processes since it enables the person to know whether he needs to tighten his belt or not. The estimate also lets the person know about the scope of the project.
Importance of project estimate:
If you don’t estimate the cost and scope of the project and directly jump to the completion of the project, you can face a serious financial crisis that will put you in the red. As a matter of fact, the cost of project completion tends to expand over time. However, getting the project estimates at the very beginning of the project can help you avoid many problems.
A simple project estimate document is a very simple piece of paper that is used by the project manager in an attempt to give a very clear picture of the project. This enables the client to think about the consequences of the project ahead of time.
Project estimate template:
The use of a project estimate template is one of the best techniques to generate a document of the project estimate. This generated estimate document is the best document a project manager can rely on.
These templates are best to be used since they provide a high level of flexibility to the user. Sometimes the user finds the template’s layout to be unsuitable for his needs. He can modify the template so that the template becomes appropriate to be used
These templates are extremely reliable to use since they have been designed by experts.
What are the benefits of a project estimate?
- Estimating the cost and the scope of the project is one of the most challenging tasks one has to go through. Sometimes, the complexity of the project increases over time. Estimating the cost beforehand makes the person get ready for the consequences of the project
- People generally take interest in the project when they find the estimate to be feasible for them. Therefore, the project manager is required to estimate different aspects of the project so that he can make it easy for the client to decide whether to proceed with the project or not
- With the help of the project estimate, a person can know about the requirements of the project. In this way, he comes to know about the money he needs to keep aside for the time to come.
- Estimating the project is art. If the project manager manages to create an effective and accurate document of the estimate, he is likely to bring his client around for accepting the project.
When to use the project estimate?
Many organizations offer different individuals to provide their estimate for the project they are going to initiate. These individuals create the document of the project estimate letting the client know about the cost the company will incur after it will start working on the project. The company then chooses the individual with the best project estimate.
File: Excel (.xlsx) 2007/10
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