Main Menu
Home / Project Management / What’s It Worth to You? Why Estimation is Important

What’s It Worth to You? Why Estimation is Important

Effort, duration, and cost—if you’ve got these three things figured out, the rest of the project should be a breeze. Unfortunately, estimating these components isn’t so easy. If you’re having some trouble with estimation, Tom Mochal has the step-by-step guidelines to keep you on track.

    1. Determine how accurate your estimate needs to be.


  • Create the initial estimate of effort hours.



  • Add specialist resource hours.



  • Consider rework.



  • Add project management time.



  • Add contingency hours.



  • Calculate the total effort.



  • Review and adjust as necessary.
  • Document all assumptions.



The last step is especially important, because you will have to make a lot of assumptions. That’s ok. It’s called an estimate for a reason. Just make sure you keep a detailed record of all the assumptions you made and why you made them. In the end, it all comes down to time. It’s not just the time spent on the project, but also the time spent on estimation that will help determine your outcome. 

About Rachel Ginder

Rachel Ginder was a staff writer for CAI's Accelerating IT Success and joined the team in 2013. She also helped with social media and research.

Check Also

The Three ‘Ins’ That Are Putting Our Projects behind Schedule

It was the short week between Christmas and New Year’s Eve, and I had time …

Leave a Reply

Your email address will not be published. Required fields are marked *

Sorry, but this content
is for our subscribers only!

But subscribing to ACCELERATING IT SUCCESS is FREE and only one click away!
Join more than 40,000 IT Professionals and get the best IT management articles to your mailbox with Accelerating IT Success!

Unsubscribe at any time