Initial phase the project has ROM (rough order of magnitude)
Estimate costs is the process of developing an approximate cost of resources needed to complete the project. It is done periodically throughout the project, to reflect when additional details are available. Costs are estimated for labor, materials, equipment, services, facilities etc. The project in the initiation phase has the ROM (rough order of estimate) of?
A. -25 % to +75%
B. -5 % to + 10%
C. – 25 % to + 50 %
D. None of the above
Answer: Option A is correct.
ROM (rough order of estimate) is done during the initiating process group. Initial phase the project has ROM (rough order of magnitude) as -25 % to + 75 %. As the project goes the estimates can range from -5 % to +10 %. Some organizations have specific guidelines for the estimation process.