Applies to
Estimate the budget for a new project
Budget estimation is typically based on experience or a set of quick calculations.
Who can use this?
Plans:
- Resource Management
In Resource Management, you can create a new project, then assign people (or placeholders for roles and disciplines) for the amount of time you estimate the project will take. The resulting future scheduled amount is the estimate for this project.
The project below shows one designer and one developer for two months, at $150/h, totaling $96,000 in billable labor.
If possible, keep estimates and subsequent proposals high level rather than calculating every minor expense upfront.
When the project becomes a reality, this estimate becomes the budget. When you add future assignments to the project, the resulting future scheduled amount should be up to the budget.
When you schedule too many people or too much time on a project, it will be immediately apparent that this project will go over budget.
If you don't schedule enough people for a project, you may not have the right resources available when you need them.
