Develop estimation process of the project

The article provides an example of how you can organize the design and approval of the Project Estimate and Budget in an enterprise. The file is in Excel format.


A project is a group of activities aimed at achieving a unique goal under given constraints: employees, deadlines, cash, etc. An important component of the project is the management of project finances.

The following basic concepts play a key role in project finance management:

• Project estimate — a list of project expenditures scheduled by item;
• A project budget is a document that combines the planned revenues and expenses of the project and their relationship over time.
• The main difference between the budget and the estimate is the presence of not only the expenditure, but also the revenue side, as well as the breakdown by time.

Consider the option of designing the estimate and budget of the project. An example of the project estimate and budget can be downloaded on this page. The file contains 2 sheets of "Estimate" and "Budget". Let's consider how you can organize the process of development and approval of these documents.

Suppose that there is a project in the enterprise. Activities for this project are described. Now it is the turn of preparing the project estimate (the "Estimate" worksheet in the Excel file).

Responsible for the preparation of the general estimate of the project is the Project Manager.

Responsible for each section of the estimate – Responsible for the project section.

The project estimate is approved by the director of the enterprise.

How the estimate is made:

• The person responsible for the section of the project describes the resources that he needs to perform this work in a given time;
• There is an assessment of these resources: calls to suppliers, analysis of price lists, commercial proposals, draft contracts, etc.;
• Filling out the estimate form;
• The Head of the section transfers his part of the estimate to the Project Manager;
• The project manager summarizes individual estimates in a single form, checks, supplements, corrects and approves from the Director;
• Once approved by the Director, the estimates are forwarded to the Finance Division.
• After the Project Estimate is completed and approved, the Project Budget is generated (budget sheet in the Excel file).

Responsible for the preparation of the budget of the project is the head of the financial service. The Head of Finance determines the sources of funding for the project, prepares the Project Budget and, together with the project manager, approves it from the Director.

In the general Enterprise Budget, the Project Budget should be entered in a separate section.