Re-estimating throughout the Project Lifecycle

Let’s face it: we’ve all been there. You’re halfway through a project, deadlines are looming, the budget is on life support, and suddenly everyone realises that the original estimate was a wild fantasy. In project management, accurate estimates are essential, but they’re also notoriously slippery. That’s where re-estimating comes into play, offering a valuable lifeline that can rescue even the most chaotic of projects. Think of it as hitting the reset button, but without the sense of defeat.

In this Hot Topic, we’ll explore why re-estimating is crucial throughout the project lifecycle, what value it brings, and why you should embrace it, even if it feels like admitting you’ve made a slight (massive) miscalculation.

At the start of a project, initial estimates are a bit like the weather forecast for next month: vague, optimistic, and probably wrong. The problem isn’t that project managers are bad at guessing—it’s that initial estimates are based on incomplete information. At the project’s onset, you only have a rough idea of what’s ahead. Maybe you’ve got a roadmap, some high-level deliverables, and a hazy picture of resources, but you’re still missing the finer details.

As the project progresses, new information comes to light. Maybe the client has changed their mind (again), or perhaps you’ve discovered that half your team is allergic to deadlines. Whatever the cause, the project’s reality rarely mirrors the original plan. Re-estimation is the only way to keep your plans aligned with actual conditions rather than holding onto outdated estimates.

Let’s break down the key areas where re-estimating brings value to a project, and no, it’s not just about self-preservation (although that’s a nice side benefit).

1. Improving Time Management

Re-estimating helps ensure that your schedule reflects the current reality rather than some utopian vision where nothing ever goes wrong. By regularly revisiting your time estimates, you can adapt to changes, identify bottlenecks, and make adjustments before they turn into full-blown crises.

For example, imagine halfway through the project, you realise a key task is taking twice as long as expected. Rather than watching deadlines get blown out of the water, re-estimation allows you to recalibrate. Perhaps you need more resources or to shift timelines. Either way, you’ll be equipped to handle it before you’re in “firefighting mode” the week before launch.

2. Keeping Costs in Check

Ever had a project where the budget spirals out of control? That’s what happens when you don’t re-estimate. Initial cost estimates are based on assumptions that will almost certainly change. Maybe the cost of materials has gone up, or your software developer was unexpectedly replaced. Whatever the reason, re-estimating allows you to adjust your financial forecasts as the project unfolds.

By regularly reviewing and adjusting cost estimates, you’re able to prevent small issues from ballooning into budget-busting disasters. It’s a lot easier to make incremental adjustments throughout the project than to panic when you realise you’re £100,000 over budget and the client isn’t in a giving mood.

3. Managing Scope

Ah, scope creep—the sneaky villain of every project. No matter how tightly you lock down the initial scope, new requirements tend to slip through. And before you know it, the project has grown in complexity, and your original estimates are as relevant as a fax machine in 2024.

Re-estimating is your best defence against this menace. By regularly reassessing the scope, you can determine how new requirements will impact time, cost, and resources. This means you can make informed decisions about whether to adjust the project’s scope or push back (gently but firmly) on requests that would derail your carefully crafted plans.

Re-estimating isn’t just about managing time, cost, and scope—it’s also a powerful tool for managing stakeholder expectations. When you’re regularly revisiting estimates and communicating updates, stakeholders are far less likely to be caught off guard by delays or budget changes. Instead of unpleasant surprises, they’ll be involved in the process, which can foster greater trust and collaboration.

Nothing wins over stakeholders more than honesty and transparency. By keeping them informed and re-estimating regularly, you demonstrate that you’re in control of the project, even when things are shifting.

Re-estimating throughout the project lifecycle might not sound glamorous, but it’s an essential practice that keeps projects on track, stakeholders happy, and budgets in the black. It’s a way of acknowledging that projects are fluid, and no matter how meticulously you plan, things will change. By regularly re-estimating, you can adjust to these changes, avoid nasty surprises, and—most importantly—finish the project with your sanity intact.

So, next time you’re in the throes of a project, remember: re-estimate early, re-estimate often, and when the inevitable surprises come, manage them like a pro.