Make project estimates not only affected by the known factors like resources, budget, type of the project and its scope. But also for the unknown variables and risks. Have the right project estimating techniques to make the accurate estimations. Here are a few tips to be followed for the accurate project estimations based on the project priorities, risk factor, proper planning process, clarifying assumptions, including contingency and common activities like meetings, edits etc. Be proper on management of estimates on time.

1. 10 Tips To Create Accurate
Project Estimates

2. Contents
1.Introduction
2.Discussing Project Priorities
3.The Numbers Should Not Just Fit The Budget
4.Consider The Risk Factors
5.Detailed Breakdown
6.Follow Proper Process Planning
7.Clarify Assumptions
8.Include Contingency
9.Appreciate The Client Business
10.Include Common Activities

3. Introduction
●Project estimation is like predicting the future. Making an accurate project
estimate can be a daunting task for project managers. The project estimate is
not only affected by known factors like budget, resources, type of project and
its scope, but also unknown variables and risks.
●The project manager faces several challenges while estimating. However,
accurate project estimate is essential for the success of the project and the
organization. With the right project estimation techniques, the project manager
can accurately make the estimations. Here are a few tips for accurate project
estimation.

4. Discussing Project Priorities
●To create accurate estimation for the project, you need to elucidate the project
priorities. For instance, in a project you can afford to incur more costs but
cannot extend the time period.
●You have to let your team know the priority so that they can create an
effective project estimate to accomplish the project successfully.

5. The Numbers Shouldn’t Just Fit The Budget
●It is a tendency of project managers to keep the estimate numbers within the
boundaries of the budget. This type of project estimate may look idealistic on
papers, but in the practical world it doesn’t serve any purpose and it becomes
difficult to justify any excess later on.
●If the budget cannot be altered, try to find out what can be done within the
limited budget.

6. Consider The Risk Factors
●There are inherent risks in projects. Some of the risks are known to your team
and some of them will be hidden. A quick risk assessment is not fruitful in such
cases.
●Your team has to be aware of risk management to create an accurate project
estimate. You have to implement the proper risk mitigation plan in your project
estimate.

7. Detailed Breakdown
●Make sure to perform detailed breakdown analysis of the project. The more
detailed breakdown will result in more accurate estimation.

8. Follow Proper Process Planning
●After breaking down the project in smaller components, the three scenarios
for each component must be analyzed – worst case scenario, best case
scenario and most likely scenario.
●This analysis should be done especially for those components which are
relatively risky or new for the team.

9. Clarify Assumptions
●Make sure that you and your team are on same page when creating project
estimates.
●For instance if your team gives you an estimate of successfully completing a
task in a given time, make sure that their assumptions of the task matches
yours.

10. Include Contingency
●Always include contingency in your project estimates. Contingency can be in
terms of cost, man hours and resources.

11. Appreciate The Client’s Business
●Being polite to the clients while asking for money is the best way to get paid
quicker while keeping the professionalism intact.
●Always add a “Thank You” note at the end of an invoice and let the client
know that you appreciate the business. One may further add another line by
asking the clients for their feedback.

12. Include Common Activities
●When making project estimations, the project manager usually overlooks
common activities like meetings, edits etc.
●However, these activities are quite frequent in any project and must be
considered in project estimation.

13. Use The Lessons and Data From
Previous Projects
●If an owner is registered for VAT, then he must include his VAT details, on the
invoice, and keep copies of all the sales invoices, even if they get cancelled or
get produced extra by mistake.

14. Use The Lessons and Data From Previous
Projects
●Reviewing the information from similar projects you have done before will help
in creating better project estimates.
●If there is a task you have done before, you will have a clear idea about how
much cost, resources and hours it will take to complete the task.

15. More Than One Technique
●Always use more than one project estimation technique to create project
estimations. This will help you make your project estimation more accurately.

16. Choose The Right Tool
All the above mentioned activities become cumbersome when traditional methods of project management.
Using a project management application helps managing and billing for projects more accurately and
efficiently.

17. Get In Touch
Web: www.invoicera.com
Social:
www.facebook.com/Invoicera
www.twitter.com/invoicera
https://www.linkedin.com/company/invoicera-invoicing-simplified
Ph (IN): +91-9350204838 (6:00 am - 12:00 midnight IST)
E-Mail: marketing@invoicera.com

18. Thanks You :)