Model Guideline #13 - Part A

Show me typical guidelines for -

Project Cost Estimating: Planning Phases

Guideline Goal

To provide a consistent basis for understanding, communicating and presenting successive project cost estimates compatible with the evolution of the project's Scope Descriptions

Expectations - 1

The deliverable of the Project Concept Phase is a Business Case document that includes

• An Order of Magnitude Estimate
  • Of the schedule and cost for the entire project
• The accuracy of this estimate, like all others, is dependent upon the extent and reliability of the scope definition information
• Practical experience suggests that the realistic accuracyof this cost estimate is in the range of -25% to +75%
  • It is strictly only an indication of the final project cost

Expectations - 2

Notwithstanding the question of accuracy ranges

• The estimating of competing projects must be sufficiently consistent
  • For making the right investment decisions

Expectations - 3

The deliverable of the Definition Phase, Stage 1, is a set of system definitions

However, this documentation should include

• A Definition Class Estimate
  • See Issacon #1034
• Practical experience suggests that the realistic accuracy range of this cost estimate is probably -15% to +25%

Expectations - 4

The deliverable of the Definition Phase, Stage 2, is a Project Charter

The Project Charter requires

• An Implementation Class Estimate
• Converted to a viable Project Implementation Budget
• Practical experience suggests that the realistic accuracy range of this cost estimate is probably -10% to +20%

To be continued. . .