A Cost Estimate is an approximation or anticipated cost for the specified a scope of work, project, or operation that is the process of predicting a cost of the facilities and services through quantitative analysis of the work required by the design documents to evaluate a single total value and may have identifiable component values. A main purpose of the Cost Estimate is for a feasibility decision, funding arrangement and making a bid or contract. A reliable cost or an accuracy of estimates are necessary for responsible management at every stage of the project that is depended on the details of input information. A project underestimation of resources and costs is one of the most common contributors to project failure.
Related Definitions in the Project: The Project Controls; The Project Cost; The Cost Estimate (Estimation); Project Management
