Basis of Estimates

The amount and type of additional details supporting the cost estimate vary by application area. Regardless of the level of detail, the supporting documentation should provide a clear and complete understanding of how the cost estimate was derived.

Supporting detail for activity cost estimates may includc:

• Documentation of the basis of the estimate (i.e., how it was developed),

• Documentation of all assumptions made,

• Documentation of any known constraints,

• Indication of the range of possible estimates (e.g., $10,000 (±10%) to indicate that the item is expected to cost between a range of values), and

• Indication of the confidcncc level of the final estimate. .3 Project Document Updates

Projcct documents that may be updated includc but arc not limited to risk register

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Project Management Made Easy

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