The concept of estimate is often limited to cost estimate. However, the actual estimate of the project also consists of many other elements, including schedule and risk analysis – everything which can be used to establish a project performance measurement and control baseline. In this new White Paper 2019-08 ‘What should a Project Estimate Comprise of? An Extended Definition of Estimate Class‘, we develop this extended definition of estimate and the consequences of that more comprehensive view.

It is important to understand that a “project estimate” cannot be just a cost estimate, as it needs to include the underlying schedule and risk estimates; and it also needs to encompass both Capital expenditures (Capex) and Operating expenditures (Opex) to provide sufficient data for the project business case.

The concept of ‘estimate class’ developed by AACEI and commonly used throughout the industry is very focused on design maturity. However, experience and good practice shows that other aspects are also essential to check the overall project maturity, and this includes project execution planning and organization as well as a proper understanding of the project environment. Therefore, we propose an extended approach to the concept of estimate class that accounts for those important factors.

Read our new White Paper 2019-08 ‘What should a Project Estimate Comprise of? An Extended Definition of Estimate Class‘ to understand all the aspects that need to be considered when checking the class of an estimate.

If you can’t access the link to the white paper, copy and paste the following link in your browser: https://www.projectvaluedelivery.com/_library/2019-08_comprehensive_estimate_v0.pdf