Tips to Estimate Project Costs for Literally Anything
Project managers have several responsibilities. One of them is to estimate project costs. You not only have to present the data to senior board members but must also justify the numbers. What if you have some tricks that you can use to estimate project costs of anything? Sounds like a dream come true for you, isn’t it? In this article at the Accidental Project Manager, get to know the six tips to estimate project costs without feeling tensed.
How to Estimate Project Costs
Learn to Manage Project Costs
If cost management has not been your core specialization back in college, you must learn it now. It will help in estimating project costs for any assignment that comes your way. It is also a KRA of managers.
The Budget Does Not Need Perfection
Remember that the budget you are collating is just an estimate. It does not have to be perfect, but the costs should not exceed too much.
Constraints Are Common When You Estimate Project Costs
The stakeholders might not agree with your project’s cost estimation. However, there are likely to be some challenges when you are estimating the project costs. Be prepared to work with those constraints.
Work on Other Processes
To get budget approval, look at your schedule, time, resource strength, skill quality, scope, and risk. You must satisfy all of them before thinking of running a project.
Consult the Accounting Team
The accounting team knows how to reduce costs and get the job done. Use their insights while estimating project costs. They might not provide extra resources but can definitely help minimize cost blindspots.
Review Cost Variance
Have a weekly review of the project costs. This will help you reduce deviations if there are any. You will be able to complete your project with little to no overspending in the end.
To view the original article in full, visit the following link: https://www.accidentalpm.online/blog/best-practices-for-project-cost-management
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