Project Pricing - 3-Point Esti

Why project pricing important?
Every business has a budget and wants to know the costs before they're willing to begin a project. A project estimate is your prediction of how much time and money is needed to complete a project.

Estimating time, efforts and cost is one of the most critical parts of project management. This is because of the fundamental importance of these estimates for the entire project planning and, in particular, the scope, schedule and cost baseline. One of the estimation techniques suggested in the PMI Project Management Body of Knowledge is the three-point estimate used with the triangular, Beta or PERT distribution.

The three-point estimate is a simple yet useful approach to estimating the time or cost of work items. According to the PMI methodology, it is used in the process groups “Estimate Activity Duration” and “Estimate Costs”. The technique involves three different estimates that are usually obtained from subject matter experts:
- Optimistic estimate.
- Pessimistic estimate.
- Most likely estimate.