Initiate a thread to comment on the above statement. What are the implications of providing a less detailed estimate to the project manager and the project plan (all knowledge areas}? Projects, where the scope is not fully dened, will result in scope changes and have a high degree of uncertainty. Thus, the project may miss some activities for which the scope needs to be updated and the project scheduletimeline may be extended. Calculation of the project cost is a vital step. For example, in a project for software development where the scope may not be clear and there might be many changes, the project cost estimation is crucial. It may also lead to cost overrun. The project managers are forced to exceed the budget. The project manager in such a situation where the scope changes are unforeseen the best strategy to follow is 1. In the early stages, the project manager should make a budgetary estimation by a feasibility study of all the activities that would incur the cost. He should mostly make an estimation of +25% or 40% of the estimated budget schedule. The threeeffective metrics for estimation of a budget are ' Rough Order of Magnitude (ROM) used at an early stage where the difference between estimates and actual figures may range from 75% more or 25% less. ' Budget estimate - done in the planning stage where the difference between estimates and actual figures may be as large as 25% more or 10% less. ' Definitive estimates it is more accurate and used as the project progresses and may range between +.r'10%. 2. The second most important step a project manager should do is monitor and manage the budget with the scope changes and adjust accordingly. The PM should make the team aware of the project cost and budget by scheduling regular meetings. He should discuss in the meeting the ways to control if in any case, the actual costs exceed the estimated costs. He should resolve any issues as they arise during the project so that the cost is not compromised. Weekly reports should be updated highlighting the risks in the project which may result in cost overrun and effective and timely measures can be taken to mitigate, avoid or accept the risk