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1. Understanding Project Cost
Estimates
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2. What is a Project Cost
Estimate?
Definition: The estimated cost of
completing a project in a fixed time.
Preparation: Typically done by Architects
& Engineers for industrial projects.
Dynamic Document: Subject to review at
all project stages.

3. Importance of Project
Cost Estimates
Funding Guidance: Provides stakeholders
with funding requirements and timing.
Informed Decision-Making: Helps in deciding
investment priorities.
Activity Prioritization: Assists in prioritizing
project activities.
Progress Monitoring: Serves as a tool for
tracking project progress.

4. Points to Consider During
Preparation
Scope Alignment: Ensure the cost
estimate aligns with the project scope.
Stakeholder Involvement: Involve
project stakeholders during
estimation.
Consistent Tax Usage: Use taxes
consistently throughout the budget.

5. Why Projects Overshoot
Estimates
01
06
02
07
03
04
05
Underestimated Budgets
Infeasible Cost Estimates
Scope Changes
Overlooking Project Challenges
Missed Milestones
Price Increases in Construction
Materials
Unforeseen Circumstances

6. Managing Budget Overruns
Collaboration: Architects, engineers, and project
management consultants collaborate to ensure
budget adherence and timely deliverables.
Avoid additional budget-increasing factors.
Prioritize Work: Focus on essential tasks and
defer less critical work.
Cost Offset: Look for opportunities to offset
increased costs elsewhere.
Inform Stakeholders: communicate with stakeholders
and provide a revised budget.
Mitigation Strategies:

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consultants-and-architects/