A cost estimate is an assessment or approximation of the likely costs of an initiative with an indication as to the degree of accuracy, usually +/- percent.
In the construction industry — a good example of project management — a cost estimate is a prediction of the costs of construction.
You need an understanding of different estimating techniques.
Our expertise, knowledge and use of the right technique contributes about 50% to your estimate’s accuracy.
A cost plan determines the fiscal feasibility of an initiative. This is done by setting the lifecycle budgets and cost controls to manage the delivery and quality of the initiative’s outcomes over a set timeframe.
In the construction industry, a cost plan is used as a way of controlling the estimated costs during the design and construction phases of a project.
Governance and management reviews
These are essential elements that ensure your estimates are checked and cross-checked, meet industry standards and fit business expectations.
Cost reviews contribute 20% to the accuracy of your cost estimate.