During the initiation phase of a project, how do you perform cost estimation and anticipate challenges and solutions to solve them?

When you respond to this question, you want to avoid not having a process in place for estimating costs and anticipating challenges. If you sound unsure, the interviewer will determine you may need more budgeting skills to keep a project within budget.

"I prefer to use the bottom-up estimating method to estimate project costs. I break down large projects into smaller components and estimate costs specifically for each component using cost estimation software. Once all of the smaller components have been estimated, I add up all of the costs for the project as a whole. I have found this method to be the most accurate and precise. I anticipate challenges based on my ten years of experience and solve these challenges using my critical-thinking and problem-solving skills."

"I perform cost estimation using the three-point estimating technique, which originated from the Program Analysis and Review Technique. Using this method, I will gather three separate estimates to find an average and use those numbers in my budget. I estimate the construction and soft costs, such as overhead and project delays. I anticipate challenges based on challenges I have had in past projects and solve them as needed. For example, if I have an issue with a vendor, I will contact the vendor to find a solution or contact another vendor to keep the project on track."