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Order of magnitude estimate in the PMP

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Can someone explain to me what is the order of magnitude estimate? This is a PMP term and I'm having my test in a few days and I don't understand what it is.

I know it's related to project estimation but again, I just don't know what it is.

Any help is appreciated!
asked 4 years ago by anonymous

1 Answer

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First, it's called "rough order of magnitude estimate" (there's the word rough at the beginning). In any case, a rough order of magnitude estimate (ROM Estimate) is a ballpark time/cost estimate that is used at the beginning of the project by the project manager to satisfy the following stakeholders' questions:

- How much will it cost?
- How much time will it take?

A ROM Estimate has a range of -50% to +50%. For example, if a ROM Estimate states that the project will cost $100,000, then it might cost anything between $50,000 to $150,000.
answered 4 years ago by MaplePM (46,940 points)

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