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Project Estimating

What is a Cost Improvement Curve?

A cost improvement curve is based loosely on the idea of a learning curve. In some contracts, generally large ones, the client may require the vendor to reduce the price of items supplied later in the project to less than […]

What is the Law of Diminishing Returns?

The law of diminishing returns says that each time we do something to receive a benefit, the benefit will be less and less. The best way to think of this is by a simple example. If we are with a […]

What is the Difference Between Estimated Cost and Price?

Estimating cost means developing the approximate cost of completing the entire project or part of it. It is the expected quantitative result. When we estimate the cost of doing a project, we are estimating the amount of money that it […]

What is Statistical Cost Estimating?

Statistical cost estimating is a method of using statistics to determine the range of values of a cost estimate and the probability that the actual cost will occur between the two values in the range. This is the same technique […]

What is Life Cycle Cost?

Life cycle cost is the cost that is associated with the project from the beginning of the project to the end of its useful life and beyond. It includes the cost of acquiring the project, operating it, and disposing of […]

What are Estimating Factors?

Productivity and utilization are the two factors we are concerned with when doing estimating for projects. Both of these factors are applicable to cost as well as schedule estimates. Productivity is a measure of how much faster or slower a […]

What Terms are Used in Estimating?

The terms used in estimating are related to the use of project management software. Because of the defaults used in project management software, we have been using these terms in our estimates. Effort: The hours of labor to do work. […]

What is a Project Estimate?

In order to run the project we must know how long things take, how much they will cost, and what kind of resources will be required. The only way we can get this data is by doing good estimates. Without […]