Estimating & Budgeting Costs
A quick, high-level estimating technique that uses historical data from a similar past project to predict the cost of the current one.
What is Analogous Estimating?
The practice of modifying project schedule dates to account for resource constraints or balancing resource demand against supply.
What is Resource Leveling?
DAILY DOUBLE - Team Leader place your wager in the chat box. Can wager up to your current point amount, or up to 1000 if have less than 1000 points.
CLUE: A type of contract where the buyer pays a fixed, set price for the defined scope of work, shifting maximum financial risk to the seller.
The style of project leadership that relies heavily on setting a compelling vision and motivating the team through shared values and inspiration.
What is Transformational Leadership?
The temporary or permanent group of senior executives who provide strategic oversight, alignment, and high-level decision-making for a project.
What is a Project Steering Committee (or Governance Board)?
An accurate, detailed estimating technique that rolls up costs calculated at the lowest level of work packages from the WBS.
What is Bottom-Up Estimating?
A project schedule compression technique where you add resources (like bringing on extra contractors) to shorten activity duration, which directly increases project cost.
What is Crashing?
A contract type where the buyer reimburses the seller for actual costs incurred plus an agreed-upon percentage or fixed fee to cover profit.
What is a Cost-Reimbursable Contract?
DAILY DOUBLE - Team Leader place your wager in the chat box. Can wager up to your current point amount, or up to 1000 if have less than 1000 points.
Clue: The phenomenon in the Tuckman Model where team members challenge authority, conflict over responsibilities, and experience friction before establishing norms.
A conflict resolution technique that involves seeking a win-win scenario by incorporating multiple viewpoints and requiring cooperative, consensus-driven problem-solving.
What is Collaborating (or Problem Solving)?
Budget specifically allocated for "unknown unknowns"—unforeseen risks that fall outside the project baseline and require executive management approval to use.
What is Management Reserve?
The logical relationship where a successor activity cannot finish until a predecessor activity has started (e.g., writing a manual cannot finish until testing starts).
What is Start-to-Finish (SF)?
A formal procurement document sent to suppliers inviting them to submit a comprehensive proposal detailing how they will solve a complex project problem and at what price.
What is a Request for Proposal (RFP)?
A conflict resolution technique that involves seeking a middle ground where both parties concede certain points to reach a quick, acceptable resolution.
What is Compromising?
The formal, document-driven process by which any adjustments to project baselines (scope, schedule, budget) must be requested, evaluated, and approved.
What is Change Control Management?
This key EVM metric is calculated by dividing the Earned Value (EV) by the Planned Value (PV) to determine how efficiently the project is executing against its timeline.
What is the Schedule Performance Index (SPI)?
A modification of a logical relationship that directs a delay in the successor activity (e.g., waiting 3 days after pouring concrete before starting the framing).
What is Lag Time (or Lag)?
The precise procurement point where the seller completes all deliverables, the buyer officially signs off on acceptance, and final invoices are settled.
What is Contract Closeout?
The specific power type wielded by a project manager that comes directly from their formal position or official title assigned within the organization.
What is Legitimate Power (or Formal Power)?
Verzuh highlights this vital matrix document that prevents confusion by identifying who holds the final decision-making authority vs. who must simply be informed on specific project tasks.
What is a Responsibility Assignment Matrix (or RACI Chart)?
The formula used to calculate Estimate at Completion (EAC) when current variances are seen as atypical, meaning future work will proceed at the originally budgeted rate.
What is EAC = AC + (BAC - EV)?
The total amount of time a project activity can be delayed from its early start date without delaying the overall project finish date or violating a constraint.
What is Total Float (or Total Slack)?
A specialized contract clause that outlines financial penalties or legal remedies if a seller fails to meet the strict project deadlines or delivery baselines.
What is a Liquidated Damages Clause?
A motivation theory highlighted in corporate management stating that hygiene factors (like salary and working conditions) prevent dissatisfaction but do not inherently motivate performance.
What is Herzberg's Two-Factor Theory?
The intense project stage where the project manager must actively handle conflicting stakeholder demands, evaluate competing priorities, and balance the expectations of the customer versus the project sponsor.
What is Managing Stakeholder Expectations (or Balancing Competing Constraints)?