Estimate base and risk or opportunity costs

The leader of the functional organization acknowledges and reviews the work package. If there are risks and opportunities, the leader reviews them and determines their impact on the work package and then creates a placeholder for estimates of the risks and opportunities. The leader also assigns a user from the organization to perform the estimation.

The assigned user can enter the base labor and material estimates and also estimate for any applicable risk and opportunity. The labor estimates are entered in hours, while the material estimates are entered in the actual currency value. Labor estimates in hours can be entered for all the categories of labor for the specific functional organization responsible for this work package.

The leader of the functional organization assigns the task to estimate the cost to a specific user from the Participants tab of the functional work package revision.

The responsible user assigns the base estimates for labor and material cost elements to the functional work package as follows:

Procedure

1. Open the functional work package and click the Estimates tab.

2. In the Direct Cost section, double-click the appropriate Estimated Cost table cells and enter the estimates.

3. Optionally, if a risk for the parent WBS work package impacts the FWP, estimate its cost. Open the FWP, click the Risks tab, and then select the risk that applies to the work package.

4. Click Create Cost from the work area toolbar above the table.

   The cost is displayed in the Risk Cost section.

5. Select the risk in the Risk Cost section and in the Risk Cost Table below it, double-click the appropriate table cells and enter the estimates.

6. Repeat steps 3 through 5 for any opportunities. Select the opportunity from the Opportunity Cost section of the Opportunities tab, and enter the estimates in the Opportunity Cost Table below.