Probability | Cost |
---|---|

10% | $1,750,000 |

30% | $3,025,000 |

50% | $5,000,000 |

70% | $10,725,000 |

90% | $22,200,000 |

Cost is tightly associated with uncertainty and risk. The greater the uncertainty the more difficult to predict cost. It is possible to have accurate budgets if you implement a cost / risk management strategy. The management strategy uses probability to calculate total project cost. Project budgeting used to consist of predicting (crystal ball) the cost of activities. A more accurate method is to use estimating ranges. These ranges can be used to build a large matrix of possible scenarios. Great Budget patent pending technology builds a model to simulate different scenarios and accurately predicts the total cost of the project. This can be accomplished without predetermining an exact cost of each activity.Great Budget Software builds an accurate budget based on the scenarios. The products collect activity ranges and build a table of probability based on many of the high number of possible scenarios.