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What is padding estimates?

Updated: 12/23/2022
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12y ago

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Adding safety factor to a time or cost estimate to ensure the estimate is met when the project is executed.

for example: Janet is forecasting how much money her department needs to support a new project. She estimates that two people and $25,000 in expenses will cover her needs. Because management typically insists on reducing forecasts by 20 percent, she increases her estimates to allow for that reduction

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