Kuluhindamine

Kuluhindamine is the process of estimating the costs associated with a project, product, or service to support budgeting, financial planning, and decision-making. In Estonian usage, the term covers both quantitative cost estimation and the qualitative assessment of cost-related risks and drivers.

The cost estimate identifies components such as direct costs (materials, labor, equipment), indirect costs (overhead, administration), and the distinction between fixed and variable costs. It also accounts for contingency allowances, inflation, currency effects, and the planned time horizon and procurement approach. The aim is to produce a coherent view of the expected expenditure over the relevant period.

Several estimation methods are commonly used. Bottom-up estimates aggregate detailed components to form a total. Top-down and analogy-based approaches use historical data from similar projects. Parametric estimation applies mathematical models linking cost drivers to overall cost. Expert judgment, vendor quotes, and data-driven techniques such as regression or Monte Carlo simulations may be employed to address uncertainty.

Kuluhindamine occurs at different stages of a project. Rough or order-of-magnitude estimates are prepared in the concept phase, with more precise or definitive estimates developed as design progresses. The resulting figures feed into the cost baseline, budget approvals, and risk management processes.

Outputs typically include a cost estimate, a cost baseline, and contingency provisions, along with documented assumptions and limitations. The approach supports lifecycle costing and is closely tied to broader cost management practices in project, program, and product management.