Relevant Resources for Project Cost Estimations

     One of the primary tasks that is required of a PM is to estimate the cost of projects and schedule resources that are needed for the project’s completion. To say the least, estimating the cost of a project and its resources can be overwhelming. Because there are so many pieces to the grand puzzle of cost estimation, it can be daunting task. Thankfully, PMs are not alone. Because every project requires cost estimations, everyone is looking for helpful resources to make the job easier. For this assignment, I am going to provide two resources I found extremely beneficial when attempting to create a project cost estimate. I hope these resources can be helpful to you estimate the cost of your project.

1. ProjectManager’s Free Project Estimate Template: ProjectManager is one of many cloud-based project management software platforms that offers all the basic tools of any project management software (i.e., planning, tracking, collaborating). It provides detailed features that allow you to track projects of any size from start to end with ease. However, the reason I am sharing this resource is because they offer a free project cost estimate template that you can download to your computer and use with Microsoft Excel. In this project cost estimate template, it divides the project into phases, lists associated tasks with each phase, and provides custom fields for each task such as contractor for the task, cost of labor for the task, cost of materials for the task, and the total cost for the task. When you input cost estimates for each field, the template automatically generates the total cost for each project phase and the project as a whole. The reason I really like this template is because no matter what cost estimation method a PM chooses to use, this template accommodates down to the most minute details and all the way up to the overarching phases of the project. Flexibility in choosing an estimation method that best fits the project is essential for a PM when estimating the project’s cost (Thamhain, 2014). Another reason I like this template is that it ensures you keep your focus on detailing the tasks within each phase of the project and calculating their costs accurately. One of the most common mistakes in cost estimation is not keep a close and clear focus on the tasks within a project phase, and this template provides a helpful guide to ensure that does not happen (Eby, 2017). Overall, if you are new to project cost estimation, this may be a great tool to help you get started.
2. Smartsheet: If you have never visited Smartsheet’s website, you are missing it. Although it is a cloud-based project management software with basic management features, it provides excellent, thorough, and free templates for almost any phase or need within project management. With over 15 template options, there are plenty to choose from that best meet the need of your project. Whether it be a simple, one-week project or a multi-phase project that spans a few years, Smartsheet has templates that can accommodate almost any project’s needs. One reason I wanted to share this resource is because one of the templates is a project cost management template. This template walks the user step-by-step through how to make a project cost management plan. In containing similar elements to a RASCI chart, this template helps the user to identify and plan for who is responsible for what tasks, who needs to give approval or be consulted on costs, and how changes in costs or budgets should be reported when these changes arise during the project (Walden University, LLC, n.d.). Another great benefit of using this resource’s templates is that it builds in commonly forgotten or overlooked budget items that can cause issues later on in the project. For example, the templates have sections built for items such as emergencies and project maximum estimate. Oftentimes, PM will forget to save a section of their budget for emergencies or unexpected costs or forget to place a ”do not exceed” limit on a project which can sometimes lead to the failure of a project. Since most experts suggest saving around 15% of your budget for emergencies and outlining the project’s maximum estimate to ensure project success, these are items that a PM cannot afford to overlook when making a cost estimate (Waida, 2021). In all, Smartsheet has valuable resources that can assist PMs with various projects and various experiences in project cost estimation.

References

Eby, K. (2017, March 27). The ultimate guide to project cost estimating. Smartsheet. 

     https://www.smartsheet.com/ultimate-guide-project-cost-estimating
Thamhain, H. J. (2014). Resources Estimating and Budgeting. In Managing technology-based 

     projects : Tools, techniques, people and business processes (pp. 232–247). essay, John Wiley 

     & Sons, Incorporated.
Waida, M. (2021, February 20). How to ensure your projects don’t go over budget. Wrike. 

     https://www.wrike.com/blog/how-stop-overbudget-projects/
Walden University, LLC. (Executive Producer). (n.d.). Creating a resource allocation plan 

     [Video file]. Retrieved from https://waldenu.instructure.com