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Chapter 8. The Art and Science of Accura... > BUILDING THE DETAILED BUDGET ESTIMAT...

8.11. BUILDING THE DETAILED BUDGET ESTIMATE

Project budget estimates can be ballparked, calculated with parametric formulas, and determined through apportioning. While these high-level estimates are useful in the process of selecting projects, they are not accurate enough for managing a project. Once the project is approved, there is a need for a detailed, accurate cost estimate.

The detailed cost estimate becomes the standard for keeping costs in line. Everyone—customer, management, project manager, and team—is better served when a cost target is realistically calculated from a detailed plan. The team understands how the goal was created and customers and management can be more confident that the project will stay within budget. Forecasting cash flow enables the project's funding to be planned and available when needed. And finally, during the course of the project, this detailed cost information will help in controlling the project, monitoring the progress, identifying problems, and finding solutions.


  

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