Sometimes estimating becomes an enormous challenge for you and your team, especially when we are talking about software project estimation.
Once we had decided to share our experience and our knowledge about software estimation process and defined four distinct types of estimations:
- ballpark figure
- service estimate
- feature estimate
- componential estimate
Of course, those types are distinct. Ballpark is what is often called a “guesstimate”. So it's an approximate number or range that gives a general idea of cost and that may help a prospect decide whether they would like to take the discussion further.
As a rule, suppliersclients need a ballpark figure at the beginning of the project. And our advise is: discussion of the project and providing ballpark figures should just be steps well towards receiving componential estimate (which is flexible, one can make use of componential type estimate for the whole development process. No need to re-estimate from scratch when you want to add, remove or replace features, services etc).
Everyone should keep in mind the risks that come with software development estimating: underestimating, overestimating, total epic fail scenario etc.
You can read more on our blog!
http://blog.lemberg.co.uk/project-management/software-estimation-process/
Hope this information will help you!