A project manager has been assigned to a new project that will be delivered using an agile framework. The sponsor is asking for a cost estimation to build the business case.
What should the project manager do?
A.
Ensure the client representative is involved in the estimation.
B.
Review the completion costs of similar projects.
C.
Ensure that a 20% contingency is included in the estimation.
In an agile framework, it is beneficial to review the completion costs of similar projects as it provides a realistic baseline for the new project’s cost estimation. This approach is supported by the PMBOK guide, which suggests using historical information and lessons learned from similar projects to inform cost estimations1. Additionally, involving the client representative (option A) is also a good practice in agile projects to ensure that the estimation aligns with the client’s expectations and priorities2. However, the primary action should be to review similar past projects for a more accurate estimation.
The PMBOK® Guide outlines the importance of utilizing historical data and information from similar projects when estimating costs3. The PMP Examination Content Outline also emphasizes the use of past project data for cost estimation in agile project environments1. The Professional in Business Analysis Reference Materials further support this approach, highlighting the value of lessons learned and historical analysis in project cost management4.
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