Project planning and cost estimation
Project planning and cost estimation are essential elements of project management. Planning has significant benefits to project management, which include advancing risk assessment and resource allocation. Planning involves evaluating all the potential threats to a given project before implementation, and such provide a better understanding of such risks, which, in turn, increases success rates. Through proper planning, project managers can maximize the use of resources and reduce wastes. Cost estimation is an element of project management that is critical not only to project managers but also to stakeholders; it should be as accurate as possible to avoid erroneous projections, which can lead to consumer dissatisfaction (Larson & Gray, 2017, p. 130). According to Larson and Gray (2017, p.130), cost estimation helps in supporting the right decisions, developing cash flow needs, determining the progress of a project, and realizing the perfect work schedule. Planning and cost estimation should be implemented strategically to enhance the success rate of a project.
Planning and cost estimation are significant aspects of project management since they influence the outcomes of a project. Strategic implementation of planning and cost estimation increases the success rate of a project. Poor planning can adversely affect project outcomes due to exposure to unpredicted risks. Besides, an inaccurate cost approximation can lead to poor financial decisions.