Understanding How This Applies to Your Next Project

Estimate Costs is something I have to do rather early in the project because of our long procurement cycle. The way our process works, I must have an estimated cost for the project before I can request funding. If funding is approved, the project is approved. If I'm not awarded funding, the project dies and we move on to the next one.

I rely on expert judgment and parametric estimating techniques to determine activity and total project costs. I often engage vendors and my own project team to help determine the costs. When I have a large project that must go out for bid, I have a well-defined scope and some idea of schedule dates and overall costs, but I won't complete the schedule until after the contract is awarded. In an ideal world, I would prefer to create the schedule prior to determining cost estimates and budgets...but we don't live in an ideal world and sometimes Planning processes have to be performed out of order.

The authorized project budget becomes one of the key measurements of project success. In a later chapter we'll talk about monitoring the budget to determine whether we're tracking to our estimates.

The communications management plan is a must-have for every project. I can't stress enough how often I've seen the root cause of project issues end up being communication problems. Never assume keeping the stakeholders informed is an easy job. Even if you know the stakeholders well, always create a communication plan. Document how you'll communicate status, baseline information, risks, and deliverables acceptance. That way there's no question as to how information will be relayed, who's going to receive it, or when it will be delivered.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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