How do you estimate project costs accurately from the start

Question

How do we develop precise cost estimates while accounting for potential risks and uncertainties?

Answer 1

To develop precise cost estimates while accounting for risks and uncertainties, I follow these steps:

1. Use a Work Breakdown Structure (WBS) to identify all tasks and resources needed.
2. Refer to past projects with similar scope to estimate costs accurately.
3. Collaborate with subject matter experts to validate estimates.
4. Add a buffer for unforeseen costs based on risk assessments.
5. Use a risk register to highlight potential challenges and incorporate their financial impact into the estimate.
6. Update estimates as the project progresses and new information becomes available.