During what process do project managers typically calculate the fair cost estimate?

The process in which project managers typically calculate a fair cost estimate occurs before submitting a bid. This stage is critical because it involves assessing all aspects of the project, including materials, labor, overhead, and any other costs that may arise. Calculating a fair cost estimate at this point ensures that the bid presented to the client is both competitive and reflective of the true costs involved in delivering the project.

During this phase, project managers analyze requirements, scope, and potential risks, allowing them to develop a comprehensive financial picture that aligns with client expectations and project deliverables. A well-prepared bid, backed by a fair cost estimate, not only supports successful project acquisition but also lays the groundwork for effective budgeting and financial management throughout the project lifecycle.

Other processes such as final review of costs, planning stages, or post-project analysis do not prioritize the estimation of costs in relation to prospective bids and project acquisition. Rather, they focus on different aspects of cost management or project evaluation after more foundational estimates have already been determined or once the project is completed.