How frequently should a cost estimate be developed for a more complex project?

For a more complex project, developing a cost estimate regularly throughout the project is essential for several reasons. First, complexity often brings uncertainty, including changes in project scope, resource availability, and market conditions. Regular updates to cost estimates allow project managers to adapt to these changes and better manage budgetary constraints.

Additionally, frequent cost estimates support effective communication with stakeholders by providing updated financial data that reflects the project's current status. This helps in making informed decisions regarding project continuation, resource allocation, and any necessary adjustments to timelines or deliverables.

In contrast, estimating costs only once at the beginning may lead to significant discrepancies as the project evolves, while waiting until project completion to assess costs can result in financial mismanagement and failure to address issues in a timely manner. Similarly, setting arbitrary intervals like five years for estimating costs does not align with the dynamic nature of complex projects, where regular assessment is paramount for success.