Why estimates are always low
Underestimation is not carelessness. Every force acting on the person producing the number pushes in the same direction.
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Estimating
Pricing work nobody has done before, ranges instead of numbers, and what to do when the estimate turns out to be wrong.
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An estimate is a prediction about work that does not yet exist, made under time pressure, by someone who wants the job. Every structural force acts in the same direction, which is why estimates are low.
These guides deal with the mechanics: breaking work down far enough to be checkable, expressing uncertainty honestly, and tracking what actually happened so the next estimate is better than a guess. For a related distinction between productivity and efficiency, read more provides a useful framing.
All of it depends on knowing what previous work actually took, which is the part most studios cannot answer. Whether that record comes from a spreadsheet or from a tracker built for it (Monitask and similar tools total hours by project and by person), an estimate without history behind it is an opinion. For a broader framework, PMI's overview of project management summarises the standard concepts behind planning and delivery.
Estimating from what previous work actually took
The difference between a studio that estimates well and one that does not is a spreadsheet of past projects.
Read the guideQuoting a range without losing the job
A single number communicates a confidence you do not have. A range communicates the truth and is harder to sell.
Read the guideWhen the estimate turns out to be wrong
Every studio has projects that overrun. What separates them is whether the client hears about it at forty percent or at the invoice.
Read the guideHourly, fixed or value: what each one actually trades
The pricing model determines who carries the risk of the work taking longer, and everything else follows from that.
Read the guideWorking out what your rate has to be
Most rates are set by looking at what other people charge. The number that matters is the one your own costs and available hours produce.
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