CHAPTER 6

Estimating Costs and Arriving at Budget

Objectives

On completion of this chapter, you should be able to understand:

  1. How to estimate the budget

  2. How to use MS-Project for estimating the project budget

Once you understand the scope of the work and plan the schedule, the next logical step is to arrive at the cost of tasks and computing the budget. In this chapter, we shall discuss key project management processes related to cost, namely, estimating and budgeting. Cost is a key constraint in most of the projects and project cost overrun can make the resultant product or service uncompetitive.

Estimating costs is the process of approximating financial resources needed to complete the project activities (identified as tasks in MS-Project). ...

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