Standards Development

Scope

Estimating in this document is taken as anything which needs to have an estimate provided in support of project, programme and portfolio management. This document aims to establish a consistent approach to estimating practice that is pan sector and industry. This should support consistency, accuracy, accountability and transparency of estimating practice across projects and programmes including where these are part of a portfolio. Whilst not directly targeted at operational activities, due to the remit of MS2, the approach used in the standard could also be applied to operational activities. This will be of particular benefit in an environment where project and business as usual activities are combined to support organizational endeavours e.g. within a portfolio. Whilst estimating of business as usual activities is outside the scope of this standard, the principles proposed should be readily applicable to such activities. Hence, consideration should be given to the use of this standard across all organizational activities to assist in providing uniformity of estimating practice. It is intended for use by professionals involved in estimating, management and review processes and practices within both public and private sectors, including the third sector.

Estimating is generally regarded as an essential part of project planning for example BS6079 clause 11.1.3., 11.2.3., 13.1.1.5., 13.1.1.8., 13.1.16., 13.2.7., ISO21502 clause 7.6.2., 7.6.3., 7.7.2., 7.7.3., 7.7.4. and ISO21503 clause 6.4.7. In this standard, estimating includes but is not limited to time, cost, sustainability, environmental issues, value and benefits. Estimating can also support activities associated with feasibility assessment, options appraisal, business case, change control, benchmarking and risk assessments.

Note: As part of the standard development, consideration will be given as to those practices that are either generic or specific to projects, programmes and portfolios.

Purpose

There are regular reports of projects and programmes far exceeding their original estimated costs or not meeting their expected performance target e.g. scope, outcomes, benefits, value for money etc, which reflects badly on project and programme management delivery capability as objectives may not be met. Whilst there are numerous reasons for this, a common challenge is the ability to produce robust estimates. There is a significant lack of consistency in the estimating outputs that underpin key decisions e.g. business cases, scope changes, bids etc, that are made in project, programme and portfolio management. This negatively impacts decision makers confidence of project management and project delivery and in them delivering the required outcomes and realizing the planned benefits.

An estimating standard would play a key role in providing a consistent approach to estimating and providing decision makers with a higher level of confidence in the estimates produced. Within projects, programmes and portfolios, there is an increasing need to produce estimates outside the traditional and narrow focus of time and cost. Estimates around sustainability, environmental issues, value, benefits etc are also required. There is also a need to support audit, assurance, education and training of both estimators and the broader 3PM community. There is also a need within organizations to provide estimates to support benchmarking exercises and this will also be considered.

The focus of the standard will be on estimates provided on behalf of a sponsoring organization in support of project, programme and portfolio management.

Public and private sectors conforming to a consistent approach will benefit from positive project outcomes as well as encouraging continuous improvement. Adoption and adherence to this new standard can support increased value achieved from organizational investment.