What is a Project Assumption

Project assumption is the events or conditions that are most likely to occur when a project life-cycle

takes place. It is also deemed as an element in the planning phase of a particular project that is assumed

to be considered as true, actual, or certain despite the lack of evidence or proof according to the Project

Management Body of Knowledge (PMBOK) 6th Edition. Assumptions are usually made based on the

hypotheses established from past experiences and knowledge. They bring a degree of risk to the project

because they might or might not be correct or realised. When the project assumptions turn out to be

incorrect, they might also become restrictions or constraints, resulting in major project delays and may

cause project limitations. The project assumptions that are commonly made by the project managers are

as followed:

• Resource Assumptions

• Cost Assumptions

• Schedule-Based Assumptions

• Quality/Specification Assumptions

• Technology Assumptions

• Location/Environment Assumptions

Examples of Projects’ Resource Assumptions

1. All the materials and equipment needed will be obtained and available to be used when conducting
the project. However, there might be a lack of materials and scarcity in the equipment needed for the
project life-cycle and this can be a hindrance in the project management and implementation to take
place efficiently because not everything needed is available.

2. The people involved in the project might not be in their best condition or health throughout the
project life-cycle because sickness and fatigue might result in a lack of efficiency when carrying out
the project. This may violate the assumption that all of the people involved will be doing their work
efficiently throughout the project.
3. All the resources allocated are sufficient for the project life-cycle. However, the project could still
be at risk if the contributions from resources are insufficient. This may compromise the timeline,
scope, and end goal of the project as the resources allocated do not meet the assumptions made
during the project planning.

4. All of the people that are involved at the beginning of the project will remain and stay in the project
until the project is completed. However, it is crucial to take note that there may be workers that may
withdraw from the project throughout the project life-cycle.

5. All the resources (equipment, tools, or materials) will be in good condition to be used throughout
the project life-cycle. However, there might be issues where the resources malfunction or damage as
the project progresses.

6. Members of the project team would have access to the tools they need to execute their respective
tasks on schedule, including advanced equipment and software as well as electricity during working
time. However, the tools may not be enough for everyone to access.

How to Manage Projects’ Resource Assumptions

• Conduct assumption analysis for the risk management planning to come up with a backup plan if the
actual plan did not work such as the ways to manage the lacking of materials that are deemed
necessary for the project, thus reducing the risk that may affect the efficiency of the project.

• Collaborate with the Human Resource department in catering to the well-being of the workers
involved in the project in ensuring that their condition and performance are at the best.

• Project assumptions should be recorded in a separate project assumption log or in any structured
document in tracking and managing the insufficiency or issues related to the project resources
(equipment, materials, tools, and people).

• Collaborate with the Human Resource department in monitoring and supervising the staff members
and workers involved in the project by keeping track about their performance and creating a contract
beforehand where they are not allowed to leave the project before it is completed unless provided
with strong justifications.

• Always monitor all of the resources and keep in track of the condition of the resources to ensure that
the resources are at the best condition since it may affect the performances’ quality of the task in the
project.
• Problems or suggestions should be communicated and directed to the project manager as soon as
possible so that action can be taken and issues can be avoided.

Examples of Projects’ Cost Assumptions

1. The cost spends for the purchase and maintenance of the resources will stay within the planned
budget by the project manager. However, if the resources depreciate or malfunction, the budget may
exceed the actual cost assumptions since it requires repairing of the resources.

2. Salary costs for those working on the project will be within the expected assumption. However, in
some cases when the deadline is nearing, the salary costs will alter since it requires the workers to
work overtime.

3. Wages of any subcontractors and indirect costs such as space rental, utilities, and office supplies will
stay within the expected budget. However, the cost may change as time passes depending on the
economy.

4. The total cost of daily operations will remain unchanged. However, in certain cases, the cost may
vary as time passes depending on the economy.

5. The project’s material, equipment, and resources costs will remain constant when purchasing.
However, the market price might be exceeded or reduced since the market price is often not fixed.

6. The total budget of the project will not exceed and can cover back the capital used.

How to Manage Projects’ Cost Assumptions

• Always monitor and check the condition of the resources (equipment, materials, or tools) and ensure
that all staff members and workers used the equipment according to the user manual and did not
violate it.

• Create accurate cost projections where these are critically important in the budgeting phase of a
project.

• Design the short-term and long-term budgets to aid the formation of contracts where this may
usually keep the overall project cost to be within the budgeted cost, thus avoiding the project to be
over the actual budget.

• Other stakeholders must verify broader project assumptions such as the budget and the cost of the
project.
• Always keep in track with every purchase of resources or materials and study the market price to
study the most profitable time to purchase the goods.

• Determine precisely where and when the shift may occur so that it is easier to assess the effect on
the project’s progress and in making necessary adjustments.

Examples of Projects’ Schedule-Based Assumptions

1. All the equipment or materials are available when it is needed according to the schedule planned.
However, there might be a situation in which the materials are insufficient for the project when
needed.

2. The finances of the project are within the budget for the specific time as scheduled by the project
manager. However, it is crucial to take note that the condition of the equipment and the country’s
economy might alter the expected budget.

3. All the staff members and workers can complete their respective tasks within the schedule planned
efficiently.

4. The supplier will deliver consumables on time. However, there might be cases where the delivery
process was delayed and the consumables did not arrive as scheduled.

5. All relevant stakeholders will come to the next meeting as scheduled. However, there might be
instances at which the stakeholders are unavailable to attend.

6. The expected project’s timeline can be met and the project will complete within the expected time.

How to Manage Projects’ Schedule-Based Assumptions?

• Create the Assumption Analysis to identify the potential risks if the project life-cycle did not meet
the expected schedule to avoid minimal loss or waste that can affect the project negatively.

• Have alternative options in dealing with uncertainty and risks if the project life-cycle did not meet
the expected schedule or budget that has been planned within the project timeline.

• Always monitor and analyse the project’s timeline to keep track of the progress of the tasks
performed by the staff members and workers.

• Deliver the project in accordance with the scheduled timeline and try to minimize the effect if the
timeline cannot be met by having a backup plan.

• Use project management tools to visualize and map out the project’s timeline to identify
dependencies and draw out the constraints and assumptions of the project.
• Have contingencies plan in place to cover for any resource constraints that might cause the project’s
timeline to be pushed back.  

Examples of Projects’ Quality/Specification Assumptions

1. The quality of all of the equipment or materials is in good working condition throughout the project
life-cycle. However, for some materials or equipment, the quality of the goods may depreciate thus
affecting its’ working condition.

2. The scope and specifications of the project will not undergo changes when the project takes place.
However, when conducting the project, there might be cases where the scope and specifications
need to be altered to cater to the requirements and needs of the project.

3. All the goods supplied by the suppliers are in the best condition and with the most preferable
quality.

4. All the staff members and workers possess good qualities of the required skills in the project.
However, the work quality of the workers may resonate differently as they possess differences in
skills, training, and experiences.

How to Manage Projects’ Quality/Specification Assumptions

• Document and monitor the project assumptions in the Project Assumption Log to maintain and
monitor the quality of the resources.

• Draw out the project’s assumption analysis to plan, predict, and monitor the scope, specifications,
and changes that might occur when conducting the project.

• Maintain good communication and keep in track with the suppliers when dealing in purchasing the
resources.

• Collaborate with the Human Resource department to provide training for the workers involved in
the project to ensure that their performance can be improved and polished.

Examples of Projects’ Technology Assumptions

1. The process of software development of the project will be able to meet the need of the stakeholders
and customers.

2. The IT support for the project will be able to cater to technical difficulties such as system error,
network congestion, connection problem, and technical errors.
3. The data have been automatically updated in the data inventory and all information in the data
inventory is synchronized.

4. All the physical devices such as laptops, computers, mobile phones, printers, and more are in good
condition to be used when conducting the project.

5. The system of the project is compatible, functions properly and stable for the project to take place
smoothly.

How to Manage Projects’ Technology Assumptions

• Always refer to the Software Development Life Cycle (SDLC) when designing the software project
and critically analyse the need analysis to identify the needs and comments from the customer.

• IT Managers should monitor and supervise the support provided by all of the IT support staff
members.

• Data Centre Managers should monitor and supervise the data in the inventory where all the data
related to the project must be ensured to be updated automatically and are synchronized.

• The Project Manager should check the condition of all of the physical devices to ensure that
everything is in the best condition to be used.

• System Administration should monitor and supervise the compatibility, security, functionality, and
stability of the system in the project.

Examples of Projects’ Location/Environments Assumptions

1. There are minimal network congestion and strong internet connection in the location where the
project is conducted. However, sometimes, connection disruptions might occur due to other
conditions that may be related to the environment or surrounding of the project.

2. The project location is fixed throughout the project life-cycle and will not change as the project
progresses. However, there might be conditions where there may be a need for the project members
to work outstation when necessary.

3. During the rainy season, the project can still progress as usual and the project will not be affected by
the changes in weather.
How to Manage Projects’ Location/Environments Assumptions
• The Project Manager should monitor the network and internet connection in the project settings and
come up with at least one contingency plan to cater to the technical difficulties in the project’s
location.

• Develop the project plan accordingly and check beforehand if there exists the need to move the
location of the project as it progresses.

• Identify and manage as many assumptions to increase the probability that the project will be
completed successfully, on time, and within the estimated budget despite the weather changes