A

Project Management Institute

PRACTICE STANDARD
FOR PROJECT ESTIMATING

TABLE OF CONTENTS
PREFACE

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CHAPTER 1 - INTRODUCTION
1.1
1.2
1.3
1.4

1.5

Purpose of the Practice Standard for Project Estimating

Definition of Project Estimating
Project Estimating and the Project Management Practice
Relationship Between This Standard and
Other PMI Standards and Knowledge Areas
1.4.1 PMBOK GuideFourth Edition
1.4.2 Practice Standard for Earned Value Management
1.4.3 Practice Standard for Work Breakdown Structures
1.4.4 Practice Standard for Scheduling
1.4.5 Practice Standard for Project Risk Management
1.4.6 The Standard for Program Management
1.4.7 The Standard for Portfolio Management
Summary

CHAPTER 2 - PRINCIPLES AND CONCEPTS

2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10

Introduction..
Scope of Project Estimating
Estimating Roles
Estimating Life Cycle Stages
Evolving Estimates
Use of Metrics
Causes of Estimating Variances
Characteristics of a Good Estimate
Industry Differences
Summary

CHAPTER 3 - PREPARE TO ESTIMATE

3.1
3.2

Introduction
Inputs
3.2.1 Project Documents
3.2.2 Experts
3.2.3 Estimating Techniques
3.2.4 Constraints and Assumptions
3.2.5 Additional Influences
3.2.6 Historical Project Information

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TABLE OF CONTENTS
3.3

Activities
3.3.1 Create Project Estimating Approach
3.4 Outputs
3.4.1 Project Estimating Approach
3.4.2 Information and Resources to Create the Estimate
3.5 Considerations
3.5.1 Allocate Appropriate Time to Plan
3.5.2 Proper Stakeholder Expectations Management
3.5.3 False Perception of Level of Accuracy
3.6 Summary

CHAPTER 4 - CREATE ESTIMATES

4.1
4.2

4.3

4.4

4.5

4.6

Introduction
Inputs
4.2.1 Project Estimating Approach
4.2.2 Estimating Information
4.2.3 Estimators
4.2.4 Enterprise Environmental Factors and Organizational
Process Assets Influences
Activities
4.3.1 Use of Analogous Techniques
4.3.2 Use of Parametric Techniques
4.3.3 Use of Bottom-Up Techniques
Outputs
4.4.1 Completed Estimates
4.4.2 Basis of Estimates
Considerations
4.5.1 Optimism in Estimates
4.5.2 Progressive Elaboration of Estimates
4.5.3 Cost-Schedule Interrelationship
4.5.4 Normalization of Historical Data
4.5.5 Accounting for Time
4.5.6 Expert Judgment
Summary

CHAPTER 5 - MANAGE ESTIMATES

5.1
5.2

Introduction
Inputs

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TABLE OF CONTENTS

5.3

5.4

5.5

5.6

5.2.1 Baseline Estimates

5.2.2 Approved Changes to Baseline
5.2.3 Resource Plan
5.2.4 Work Performance Information
5.2.5 Organizational Process Assets
5.2.6 Project Estimating Approach
Activities
5.3.1 Manage Estimates: A Living Plan Cycle
5.3.2 Use of Tools and Techniques
Outputs
5.4.1 Updated Estimates
5.4.2 Updated Forecast for Remainder of Project
5.4.3 Updated Change Request Log
5.4.4 Reporting and Communication
Considerations
5.5.1 Actuals
5.5.2 Variance Analysis
5.5.3 Change Control
5.5.4 Quality of Estimates
5.5.5 Organizational Culture
Summary

CHAPTER 6 - IMPROVE ESTIMATING PROCESS

6.1
6.2

Introduction
Inputs
6.2.1 Project Information
6.2.2 Project Estimating Approach
6.2.3 Historical Project Information
6.2.4 Baseline Estimates
6.2.5 Updated Estimates/Forecasts
6.2.6 Change Log
6.2.7 Actual Versus Estimate Data
6.2.8 Stakeholder Feedback
6.2.9 Organizational Process Assets
6.3 Activities
6.3.1 Gather Estimating Information
6.3.2 Assess Estimating Process
6.3.3 Determine Root Causes and Lessons Learned

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6.3.4 Develop Action Plan for Changes
6.3.5 Implement Changes and Share Lessons Learned
6.4 Outputs
6.4.1 Updated Tools and Techniques
6.4.2 Updated Organizational Process Assets
6.5 Considerations
6.5.1 Spend the Appropriate Time
6.5.2 Consider the Skill Set
6.6 Summary

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REFERENCES

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APPENDIX A - GUIDELINES FOR A PMI PRACTICE STANDARD

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A.1 Introduction
APPENDIX B - EVOLUTION OF PMI'S PRACTICE STANDARD
FOR PROJECT ESTIMATING
B.1 Pre-Project
B.2 Development Work
B.3 Exposure and Consensus
APPENDIX C - CONTRIBUTORS AND REVIEWERS OF THE
PRACTICE STANDARD FOR PROJECT ESTIMATING
C.1 Practice Standard for Project Estimating
Core Committee (Development Phase)
C.2 Significant Contributors
C.3 Practice Standard for Project Estimating Reviewers
C.4 Practice Standard for Project Estimating SME Reviewers
C.5 Practice Standard for Project Estimating
Core Committee (Research Phase)
C.6 Practice Standard for Project Estimating
Committee Members (Research Phase)
C.7 Final Exposure Draft Reviewers and Contributors
C.8 PMI Standards Member Advisory Group (MAG)
C.9 Staff Contributors
...:
APPENDIX D - ESTIMATING MODELS
GLOSSARY
INDEX

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