TABLE OF CONTENTS

1. INTRODUCTION

1.1 Purpose of this Practice Standard

1.2 Project Estimating Definitions

1.3 Scope of Project Estimating

1.4 Project Estimating and the Project Management Practice

1.5 Relationships among this Practice Standard and Other PMI Standards and Knowledge Areas

1.5.1 The PMBOK® Guide

1.5.2 Practice Standard for Earned Value Management

1.5.3 Practice Standard for Work Breakdown Structures

1.5.4 Practice Standard for Scheduling

1.5.5 The Standard for Risk Management in Portfolios, Programs, and Projects

1.5.6 The Standard for Program Management

1.5.7 The Standard for Portfolio Management

1.5.8 The Standard for Organizational Project Management (OPM)

1.5.9 Navigating Complexity: A Practice Guide

1.5.10 Agile Practice Guide

1.5.11 The PMI Guide to Business Analysis (Includes: The Standard for Business Analysis)

1.6 Summary

2. CONCEPTS

2.1 Overview

2.2 Estimating Roles

2.3 Estimating Life Cycle Stages

2.4 Evolving Estimates

2.5 Use of Metrics and Available Data

2.6 Estimation Variances

2.6.1 Predictive Life Cycles

2.6.2 Adaptive Life Cycles

2.6.3 Portfolio Estimate Variances

2.7 Characteristics of an Estimate

2.8 Industry-Specific Practices

2.9 Case Study

2.10 Summary

3. PREPARE TO ESTIMATE

3.1 Overview

3.2 Prepare Project Estimating Approaches

3.2.1 Inputs

3.2.2 Outputs

3.2.3 Considerations

3.3 Case Study

3.4 Summary

4. CREATE ESTIMATES

4.1 Overview

4.2 Use of Quantitative Estimating Techniques

4.2.1 Analogous Estimating Techniques

4.2.2 Parametric Estimating Techniques

4.2.3 Bottom-Up Estimating Techniques

4.3 Use of Relative Estimating Techniques

4.3.1 Relative Estimating Technique Inputs

4.3.2 Relative Estimating Technique Outputs

4.3.3 Relative Estimating Technique Considerations

4.4 Use of Qualitative Estimating Techniques

4.4.1 Inputs to Qualitative Estimating

4.4.2 Outputs of Qualitative Estimating

4.4.3 Qualitative Estimating Considerations

4.5 Considerations

4.5.1 Calibration

4.5.2 Optimism and Pessimism in Estimates

4.5.3 Progressive Elaboration of Estimates

4.5.4 Cost–Schedule Interrelationship

4.5.5 Accounting for Time

4.5.6 Anchoring

4.5.7 Machine Learning and Artificial Intelligence in Estimating

4.5.8 Common Success Factors

4.6 Case Study

4.7 Summary

5. MANAGE ESTIMATES

5.1 Overview

5.2 Manage Estimates: A Living Plan Cycle

5.2.1 Inputs to the Manage Estimates Stage

5.2.2 Outputs of the Manage Estimates Stage

5.2.3 Considerations

5.3 Case Study

5.4 Summary

6. IMPROVE ESTIMATING PROCESS

6.1 Overview

6.2 Assess the Estimating Process

6.2.1 Inputs to the Improve Estimating Process

6.2.2 Outputs of the Improve Estimating Process

6.3 Implement Changes and Share Lessons Learned

6.3.1 Inputs

6.3.2 Outputs

6.4 Considerations

6.5 Case Study

6.6 Summary

REFERENCES

APPENDIX X1 THE PRACTICE STANDARD FOR PROJECT ESTIMATING – SECOND EDITION CHANGES

APPENDIX X2 CONTRIBUTORS AND REVIEWERS OF THE PRACTICE STANDARD FOR PROJECT ESTIMATING – SECOND EDITION

APPENDIX X3 CASE STUDY: BUILDING A CUSTOM BICYCLE

APPENDIX X4 ESTIMATING TOOLS AND TECHNIQUES

GLOSSARY