Flashcards in 6. Introduction to the Estimation Process Deck (3)
What is the objective of cost estimating?
The objective of cost estimating (or cost planning) is to define as accurately as possible the minimum realistic cost of executing an activity. The estimating task may be carried out by any project party but is usually done by, or on behalf of, the contractor or promoter to determine their costs.
What is the purpose of a cost estimate?
>comparing alternative technical solutions;
>identifying financial commitment;
>as a basis for tendering;
>as a yardstick against which performance can be measured.