Cost constraints in project management

The budget processes related to the project include estimating the cost of all the little parts.

Methods to estimate the cost of the project.

• Use historical data. Track and analyze a project similar to yours, which have been developed in the market over the past years.
• Determine the resource costs. Track the costs of the goods and labor that are going to be used on a per-unit basis.
• Use different parameters. Measure different stats from the old and new data found in previous and on-going projects.
• Use bottom-up approach. Track the lowest to highest budgets spent on previous projects.

Other methods for budget estimation are vendor bid, reserve, and quality analysis.