What is the relationship between design changes and cost estimation accuracy?

Design changes often result in increased costs, which means that cost estimations may need to be revised to reflect these adjustments accurately. When a project undergoes design changes, it can affect various aspects such as labor, materials, and timelines, each of which can contribute to an increase in overall project costs.

For instance, if the scope of a project is expanded or requirements are altered significantly, the original cost estimates become less relevant. This necessitates a re-evaluation of the budget to accommodate the increased quantities of materials, additional labor, or even new technologies and methods that were not originally accounted for.

Understanding this dynamic is crucial for project managers and estimators, as it emphasizes the need for flexibility in budgeting and a proactive approach to managing project changes. This perspective allows for better financial planning and resource allocation, helping to ensure that the project remains on track despite changes in design.