Project Cost
To estimate project cost is a crucial part. Once a precise scope of work and time frame is established cost estimates for each activity can be prepared. As during project life cycle projects' scope of work may grow or shrink, cost may also change if there is any variation in time or quality and/or resources. Several pitfalls can impede the cost estimation such as:
- Misinterpretation of the scope of work
- Ommissions or imporoperly defined scope of work
- Poorly defined or overly optimistic schedule
- Applying improper skill levels to tasks
- Failure to account for risks
- Failure to use forward pricing rates for overhead, general and indirect costs
