Project estimation transforms a defined hypothesis into a credible envelope of resources, money, people, and time for delivering a viable result. It accounts for team capacity, work scale, delivery commitments, and known risks while recognizing that plans will adapt as the project unfolds. section 3.2 section 3.7
Build an estimate through explicit project artifacts and decision points:
- Define the work required to deliver the project hypothesis, including its scale and expected outcome. section 3.2
- Create and socialize the team design and resourcing plan. section 3.2
- Review the risk register and price mitigation, resolution effort, uncertainty, and required elasticity into the budget. section 3.2.3
- Review the completed pre-sales process, document assumptions, and obtain accountable sign-off before discussing customer costs. section 3.2 section 3.7
Risk-adjusted mitigation
A $500 mitigation with low confidence is budgeted at $1,000; a high-confidence mitigation is budgeted at $650, before organizational margin. High-impact risks without credible mitigations require explicit escalation and acceptance. section 3.2.3
