I had subscribe to your daily newsletters and bought flash cards also. I had a query regarding yesterdays question. As Per PMBOK guide the rough order of magnitude lies between -50% to +50%, but as per your explanation it is -25% to +75%, can you please elabourate me why? Thanks J
Your customer has asked you for an order of magnitude estimate. You estimate that the project will be around $1000. What is your response to the customer?
B.) $900 - $1250
C.) $760 - $1600
D.) $1000 - $2000
C.) is correct. An order of magnitude estimate should be between -25% to +75% of the estimated cost. C is closest to this guideline.
We explained the reason why there is a difference right in the email itself...
Here is the explanation that we gave
If you compare these numbers to the PMBOK Guide you will notice that there is a difference. The PMBOK Guide only mentions the ROM at -50% to +50% but not the other numbers. Don't be surprised. The PMBOK Guide only contains about 75% of the knowledge required for the PMP exam. The other 25% come from various other sources and the PMI does not specify exactly from where. The percentages that we have listed above are the generally accepted ranges and you can find them references both in many PMP prep books as well as on many free PMP websites. But don't be shocked if they are not in the PMBOK Guide.
Until Next Time,
Cornelius Fichtner, PMP, CSM
President, OSP International LLC
Moderators: Yolanda Mabutas, Ahmed Amin, Scott Gillard, Mary Kathrine Padua, ERIC BARTLETT, Gail Freedman, Kevin Nason, Steven Mudrinich, PMP, Mark Wuenscher, PMP, John Wolverton, Tracy Shagnea, PMP, Jada Garrett
This interview with Simona Fallavollita (LinkedIn Profile) was recorded at the magnificient Project Management Institute (PMI)® Global Conference 2017 in Chicago, Illinois. We discuss the how, what, why and when of the changes that are coming to the PMP exam.