PMP: Types of Cost Estimate

There are 3 types of Cost Estimate:

1. Rough order of magnitude:

-25% to +75%

Done during Initiation phase

2. Budget estimate

-10% to + 25%

Done during Planning – Obtain funds and approval

3. Definitive estimate

-5% to + 10%

Done during Planning for proposals, bid evaluations, contract changes; Done during Design for final budgeting


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