The estimate/budget is the base, the foundation for project control. Spend the time and the effort to ensure the estimate is as accurate as possible. If the budget is flawed, you cannot control your project.

Be prepared to revise the estimate/budget, as you discover new facts. Never try to control to unreasonable or unrealistic budgets. You will alienate your people, and likely fail. If management insists, get your objections on record and be prepared for an unpleasant experience.

Estimates come in many forms. They will vary in levels of accuracy depending upon the stage of the project. The estimate can be as simple as the best guess of your leads or superintendents, or as complex as detailed material take-offs.

When the estimate is informal, it’s a good idea to record who provided the data. Be sure to record the ranges given by the leads or superintendents. This will be useful when it comes time to establish cost/schedule contingencies (more on this later).