In project management, project managers are often asked by the customers and stakeholders to verify if the schedule and cost of the project can be met within a certain budget. There are certain ways to determine whether the schedule and costs can be met.
Part of the tools used in conduct procurement is the independent estimates. It is a project management process that uses the third party to collect as well as analyze information. The information is then used to predict the cost and schedule of the project.
In the procuring items for the project, the organization either relies on an external estimator or prepares its own independent estimate. Doing the latter can provide a benchmark on the project responses. The differences in the cost estimate indicate a deficiency in the procurement statement. This also indicates that the seller either failed to respond or misunderstood the procurement statement of work.
Creating an independent estimate is one of the tools used in project management. It allows the project managers will be able to determine the validity of the project’s schedule and costs based on the authorized given budget.
This term is defined in the 5th edition of the PMBOK.