What are Project Estimates?

What are Project Estimates?

What are Project Estimates? Jonathan Poland

Project estimates are used to predict the costs, task completion times, and resource needs for a project, often broken down by specific activities. These estimates serve as the foundation for plans, decisions, and schedules, and their accuracy is essential. However, since they are looking into the future, they are inherently uncertain.

There are several common types of project estimates that businesses use to plan and manage projects:

  1. Rough order of magnitude (ROM) estimates: ROM estimates are high-level estimates that provide a rough idea of the scope and cost of a project. They are often used at the beginning of a project to help determine feasibility.
  2. Budget estimates: Budget estimates provide a more detailed estimate of the costs associated with a project. They are used to allocate resources and set financial targets.
  3. Three-point estimates: Three-point estimates provide a range of possible costs for a project, based on best-case, most likely, and worst-case scenarios. They are used to provide a more realistic view of potential costs and to identify potential risks.
  4. Definitive estimates: Definitive estimates provide a detailed and accurate estimate of the costs and resources needed for a project. They are typically developed once the project scope has been fully defined and are used to finalize the project budget.
  5. Bottom-up estimates: Bottom-up estimates are developed by estimating the cost of individual tasks or components of a project and then aggregating them to determine the total project cost. They are used to provide a more detailed and accurate estimate.
  6. Expert judgment estimates: Expert judgment estimates are based on the experience and expertise of individuals or groups who have knowledge of the project or similar projects. They are often used to supplement other types of estimates.
Learn More
Progress Trap Jonathan Poland

Progress Trap

A progress trap is a situation where a new technology, which has the potential to improve life, ends up causing harm due to a lack of risk management.

Rationalism vs Empiricism Jonathan Poland

Rationalism vs Empiricism

Rationalism and empiricism are two philosophical approaches to understanding the world and acquiring knowledge. While they share some similarities, they…

Design Innovation Jonathan Poland

Design Innovation

Design innovation refers to the development of designs that represent a significant advancement. This can encompass innovation in fields that…

Experiment Cycle Time Jonathan Poland

Experiment Cycle Time

Experiment Cycle Time is a measure of how long it takes for an idea to go through the innovation process,…

Cause and Effect Jonathan Poland

Cause and Effect

Cause and effect is a concept that refers to the relationship between an event (the cause) and a subsequent result…

Cottage Industry Jonathan Poland

Cottage Industry

A cottage industry is a small-scale, home-based business or economic activity that is typically run by a single person or…

A/B Testing Jonathan Poland

A/B Testing

A/B testing, also known as split testing or experimentation, is a statistical method used to compare two versions of a…

Branding 101 Jonathan Poland

Branding 101

Branding is the process of creating a unique and recognizable identity for a product, service, or business. This identity is…

Scaling 101 Jonathan Poland

Scaling 101

Scaling is the process of increasing the size, scope, or reach of a business, product, or service. This can involve…

Content Database

Labor Specialization Jonathan Poland

Labor Specialization

Specialization of labor involves dividing work into specific roles or tasks, with the goal of improving productivity, efficiency, quality, and…

SilverCrest Metals Jonathan Poland

SilverCrest Metals

SilverCrest Metals Inc. (SILV) is a mining company specializing in the exploration and development of precious metal properties, primarily focusing…

LendingClub Jonathan Poland


LendingClub Corporation (LC) operates as a parent company for LendingClub Bank, National Association, offering a range of financial products and…

Research Skills Jonathan Poland

Research Skills

Research skills are abilities that enable individuals to effectively investigate, analyze, and communicate knowledge. These skills are essential for success…

Build-A-Bear Workshop Jonathan Poland

Build-A-Bear Workshop

Build-A-Bear Workshop, Inc. (BBW) is an American specialty retailer that provides a unique, interactive experience for customers to create personalized…

Brand Perception Jonathan Poland

Brand Perception

Brand perception refers to the way that a brand is perceived by its target audience. It’s important for companies to…

Message Framing Jonathan Poland

Message Framing

Message framing is the way in which information and communications are constructed and presented. The way a message is framed…

Foot in the Door Jonathan Poland

Foot in the Door

The foot-in-the-door technique is a persuasion strategy that involves asking for a small favor or agreement first, before making a…

Disruption Strategy Jonathan Poland

Disruption Strategy

A distribution strategy outlines how a company plans to make its products or services available to customers. This includes not…