For a project manager there are three key parts to estimating project cost:
1. Provide a date range for the estimate.
2.Use the word about to describe the precision of the estimate.
3.Provide a confidence level for the estimation. There's a large difference between 90% confidence and 100% confidence.
By following these three simple guidelines project managers can avoid project failure and actually increase project support. By providing the steering committee valid information about the project and by managing expectations about the project, there is a higher probability that the project will be successful. Everyone understands that estimates are guesses but buy using these techniques you can improve your EQF( estimation quality factor). Providing an EQF that is as high as possible is the ultimate goal of the project manager and it is essential to track the EQF throughout the project life cycle to make more accurate adjustments to future and other current projects. EQF is a great way to convey project uncertainty without discouraging the project sponsors.
