Standards Development

Scope

The scope of this project is to produce an International Standard on Cost Estimating in Project, Programme and Portfolio Management, including the key cost estimating principles, practices, and processes that enable the development reliable cost estimates across the life cycle of projects and programmes.

The scope will include guidance on the:

• Establishment of a cost estimating framework and governance structure;

• Definition of cost estimating principles, concepts, inputs, and required data sources;

• Application of cost estimating methods and techniques (e.g., analogous, parametric, bottom - up, and expert judgment);

• Development, review, validation, and updating of cost estimates throughout the project and programme life cycle;

• Treatment of uncertainty and risk in cost estimates, including sensitivity and risk analysis;

• Integration of cost estimating with related project, programme and portfolio management processes, such as scheduling, risk management, earned value management, and budgeting.

Use of this International Standard will provide guidance on how to define, structure, and apply cost estimating practices that are consistent, transparent, and comparable across organizations and industries. It is intended to be applicable to any type of organization — public, private, or community — and for any type of project or programme, irrespective of complexity, size, or duration. The Standard will complement information contained in related ISO series of standards. The outputs from the application of this international standards will provide inputs into the application of ISO 21508 Earned Value Management, ISO 21511 Work Breakdown Structures and ISO 21512 Earned Value Implementation Guidance and also ensure consistency in cost estimation as part of integrated project, programme, and portfolio management.

Purpose

The purpose of this Standard is to provide globally recognized guidance for establishing and applying cost estimating practices that are credible, consistent, and repeatable across organizations, industries, and national jurisdictions. It will serve as a common framework for practitioners, clients, contractors, and other stakeholders to define, communicate, and assess cost estimates throughout the life cycle of projects and programmes.

The ISO Cost Estimating Standard can be used by any type of organization — public, private, or community — and for any type of project or programme, irrespective of complexity, size, or duration. The Standard will promote the adoption of sound cost estimating practices in accordance with recognized principles, thereby enhancing confidence in project investment decisions, business cases, procurement processes, and project and programme performance measurement and management. The benefits of this Standard are achieved through:

1. Improved consistency and comparability of cost estimates across industries, sectors, and regions;

2. Enhanced decision-making for executives, funders, and clients by providing reliable, transparent cost information;

3. Greater integration of cost estimating with related disciplines such as risk management, scheduling, earned value management, and budgeting;

4. Reduced project cost overruns and delays by strengthening early planning and life cycle cost management;

5. Support for capacity building by providing a framework for training, professional development, and organizational maturity in cost estimating.

The target audience of this Standard includes, but is not limited to:

• Those who direct and control projects, programmes, portfolios, and governance, so they better understand the principles, practice, and application of cost estimating in order to provide appropriate support and guidance to managers and delivery teams;

• Those advising, informing, or assisting practitioners (such as consultants, auditors, and oversight bodies), so they can deliver more effective assurance and guidance in cost estimation practices;

• Those involved in the development of national or organizational standards and guidelines, ensuring they are aligned with internationally recognized good practice;

• Academic and professional bodies, which can use the Standard to develop training curricula, certification programs, and applied research in cost estimating.

The development of this International Standard will address a significant gap in the ISO 21500 family of standards by providing a consistent, internationally agreed approach to cost estimating, an essential discipline that underpins successful project, programme, and portfolio delivery.