When to use it
A useful fit
Use it when work-package estimates need to become a budget that can be reconciled with actual costs and responsibilities.
Know the limits
Do not total incompatible price bases, currencies or periods. Resolve omissions and double counting before adding reserves.
How to use it
- Agree estimate scope, currency, date basis and cost categories.
- Assign each cost once to a work package and an accountable reporting group.
- Reconcile the group totals, document assumptions and show each reserve separately.
Worked example
A delivery budget contains supplier work, internal effort and support preparation. The estimator assigns the shared test environment once, records its allocation basis and checks that the finance totals match the work-package roll-up.
Illustrative scenario by fannarmaximus; not an official exam question.
Common pitfalls
A shared service cost can disappear between teams or be charged in full to both.
Attribution & sources
Common estimating practice; this explanation and example are by fannarmaximus.
The citations below identify authoritative references for this topic. They do not imply endorsement or reproduce the bodies’ competence lists.
- IPMA® (2015). Individual Competence Baseline for Project, Programme and Portfolio Management, Version 4.0 (ICB4). Zurich: International Project Management Association. ISBN 978-94-92338-00-6 (print), 978-94-92338-01-3 (pdf). Free PDF from IPMA®: https://ipma.world/ipma-standards-development-programme/icb4/
- Project Management Institute (2025). A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Eighth Edition, and The Standard for Project Management. Newtown Square, PA: PMI®. ISBN 9781628258295.
- Association for Project Management (2025). APM Body of Knowledge, 8th edition. Princes Risborough: APM. ISBN 9781913305390.