Challenges in cost estimation.

  • There is no exact science for cost estimation - it will never be considered as all accurate.

  • No person can reasonably predict what can go wrong in the project.

  • Most estimation methods assume things will proceed as expected and simply adds some slack to account for what can go wrong.

Possible solutions

  • Delay estimation - 100% accuracy but less usefull

  • Base estimation on data from previous projects that have been completed.

  • Break the system to smaller parts and generate the estimates for smaller parts, which is easier.

  • Use emperically-based estimation methods.

Last updated