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Estimating Can Help You Managing The Risks

cost-estimation rgv

Did you know that estimating is an invaluable tool for anticipating and managing these project uncertainties?

When we can identify our cost and schedule requirements with relative precision, it reduces the risk of running out of time, resources, and budget during a project.

Yet with all of the emphasis we place on creating accurate estimates and bids, we still seem to have difficulty developing realistic predictions of our time and effort. If we look carefully at the evidence, I believe we’ll find three basic, underlying clues to the reasons for our challenges with estimating:

  1. The presence of hidden or unknown variables that are difficult or impossible to anticipate, and sometimes even more difficult to resolve
  2. Our often-idealistic views of our own capabilities. We frequently believe that we can achieve much more than is possible in the available time
  3. A strong human desire to please other people by telling them what they want to hear. (After all, who wants to be the bearer of bad news?)