There are two reasons why cost estimation is important for project managers. First, it is extremely difficult to estimate project costs well. And second, poor cost estimates are often the main reason for a project going over budget.

And there is another factor that I call the “project knife edge.” This is the competing pressure:
– Reduce your costs to satisfy your financier
– Increase your budget to reduce the risk of your project

All this makes estimating project costs difficult. In this video I explain how to best estimate project costs:

1. The process of project cost estimation
2. The cost sources in project management
3. Estimation methods and my tips for cost estimation
4. How to add a reserve to your project costs
5. From estimate to budget to cash flow.

You might also like the following accompanying videos:
– How to ensure effective project cost management
… https://youtu.be/7bXcc7AYajo
– Project financial management – 5 tips for good cost control – Video
… https://youtu.be/1mHaBKAamIU
– What is a Discounted Cash Flow (DCF)
… https://youtu.be/Pr_2fYwldmw
– What is a business case?
… https://youtu.be/c95wGysj9Nc
– Project Business Case: Write an effective project proposal
… https://youtu.be/teUEA2CCyG8

For more details, see three detailed articles on our website:
1. Project Estimation: Master the Art and Craft
– https://onlinepmcourses.com/project-estimation-master/
2. Project Cost Management – The Most Important Things You Need to Know and Do
– https://onlinepmcourses.com/project-cost-management-essential-things/
3. Big guide to the project business case
– https://onlinepmcourses.com/project-business-case/

My basic introductory book on project management is “How to Manage a Great Project” (published by Pearson): https://geni.us/4Iz6M (affiliate link).

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Basic Management Courses – free training on YouTube with 2 new management lessons per week – can be found on our sister channel Management Courses: http://youtube.com/c/managementcourses

You can find more of our project management videos in thematic collections in our free Academy of Project Management: https://onlinepmcourses.com/free-academy-of-project-management/

#Projectmanagement #Projectcostmanagement #Costmanagement

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