ISO 10006:2017
Clause 7.4 and 7.5: Time-related and cost-related processes – ISO 10006:2017

ISO 10006:2017 7.5.2: Cost estimation

What does 7.5.2 require?

Every project cost should be clearly identified, such as the cost of activities, overheads and products or services. Estimates should draw on relevant information sources and tie to the project's breakdown structures (7.3.4); estimates from past experience should be checked for accuracy and fit with current conditions; and costs should be documented so they can be traced to where they came from. Enough money should in particular be budgeted to set up, operate and sustain the project's quality management system. Estimates should reflect current and expected economic trends such as inflation, taxation and exchange rates. Where estimates carry significant uncertainty, the risks should be identified and evaluated, documented and acted on (7.7.2), and an allowance for the remaining uncertainty, often called a contingency, included. Estimates should be in a form from which budgets can be set up and developed according to approved accounting processes and the project organization's needs.

Maintained by Gerard Blokdyk

Other controls in Clause 7.4 and 7.5: Time-related and cost-related processes – ISO 10006:2017

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