Simple Method Proposal for Cost Estimation from Work Breakdown Structure

Regardless the extensive literature in project management, the model for cost estimation remains unclear and unexploited mainly in terms of simple methods. Accuracy effort and schedule estimation is still a challenge. This paper introduces stream lining procedures from project work breakdown structure (WBS) evaluating the duration processes and either the input cost hour or the fixed costs. The measures are made via hypothesis testing over the responsibility assignment matrix (RAM). We propose a method for project cost construction using a spreadsheet to create an early-stage budget allocation. In this paper we argue that the simulated cost results present superior accuracy while establishing the applicability of the proposed simulation procedure. Generally, the precision is related with the WBS detailed design. The cost methodology approach offers a simplified decision tool for assessing the construction cost on the project managers’ decision.