Generating an accurate estimate is one of the crucial aspects of job

management, leading to successful project execution. Not only do

estimates help you win new business, but they also determine the

project budget, manage resources, focus on schedule, and ultimately

deal with invoicing.



Unfortunately, companies often underestimate what's necessary to

complete the job. That's when you miss deadlines, spend more money

than planned, or overwork your staff—working on a budget that

ensures minimal costs while boosting the project's quality and scope

can be challenging.



So, let's take a closer look at cost estimation and budgeting and see

how these affect the project's outcome.



COST ESTIMATION AND BUDGETING IN PROJECT MANAGEMENT



The project can only succeed if you have the necessary people and

materials, which cost money. In project management, cost estimation is

defined as the process that calculates the total expenditure of the

project [https://activecollab.com/resources/business-profitability].



The ...