Setting objectives
Estimating costs

The purpose of the cost estimate is to :

• evaluate the profitability of a project in relation to a market price or a specific customer requirement;

• commit purchase orders or supplier orders to suppliers;

• assess the company's ability to commit to future investments;

• target a budget that will enable the project to be carried out in conditions of satisfactory profitability;

• establish the initial reference budget on which the project will be judged throughout its life.

The estimate is a first step in the financial management of the project, providing the bid team with an initial reference for better control of project costs.

To implement this process...