Project Management Professional Practice Question

To estimate the budgetary needs accurately, the project manager should start by reviewing the lessons learned and historical data from the previous similar project. This will provide a baseline for estimating the costs associated with the development of the core features. However, the project manager must also account for the additional functionalities requested by the client, which will require further resources and potentially increase the overall budget.

Analyzing the current market rates for resources alone may not provide an accurate estimate, as it does not take into account the specific requirements of the project or the lessons learned from past experiences. Blindly increasing the budget by a fixed percentage based on the additional functionalities is also not recommended, as it may lead to an overestimation or underestimation of the required funds.

Conducting a thorough risk assessment is essential for anticipating potential challenges, but it should be done in conjunction with other estimation techniques to develop a comprehensive budget plan.