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Estimating Project Time and Cost

Discuss the techniques that companies are using today for estimating time and cost in their projects.

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Companies use various techniques to estimate time and cost in their projects. The techniques used are determined in part by the amount of detail the company has in regards to the project. Early cost estimates are generally determined based upon the project scope, the basic approach, and general assumptions. The Project Management Institute calls this an "order of magnitude cost estimate" (Kemp, 2012). For the most part this estimate is based upon past experiences and general assumptions. It is not entirely accurate but it gives a ballpark figure of the projected time and cost of the project. This technique gives clients a range to expect. However, most clients demand much more concrete information, since actual dollars and time will be involved.

The next technique used is breaking the project into big pieces, and then estimating ...

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This detailed solution discusses techniques that organizations used to estimate time and cost in their projects in 531 words with a reference.