Clarifying assumptions
Estimating costs

When a cost estimate is requested, it is important to quickly determine the purpose and the expected requirement. The level of precision and accuracy required of an estimate will differ depending on whether it is required for :

• a preliminary approach to defining an objective cost estimate;

• an advanced design phase, in which case the precision required is greater.

The "commercial" approach is also important.

• In conventional approaches, costs are estimated "without market constraints": costs are estimated ad hoc, and the selling price is given as a function of these costs...