Our estimates use outdated rates. What should we update?
Stale cost assumptionsRefresh relevant labor, supplier, and operating assumptions before making new commitments. Preserve the original estimate for comparison and explain the effect of changed rates separately from scope growth.
What to do now
- Identify rate-sensitive work
- Validate current applicable assumptions
- Recalculate remaining cost exposure
- Obtain decisions on any funding gap
When to escalate
Escalate when
Updated rates make the approved commitment unaffordable.
Who decides
The budget owner and authorized finance representative
Example
A renewed specialist quote changes the cost-to-complete forecast without rewriting historical actuals.
Mistake to avoid
Applying current rates retroactively to hide original estimating performance.
Prevent a repeat
Review remaining cost and commitments, not only money already spent; reconcile with the authorized finance source.
Related cases
- How do we forecast the final project cost?Incomplete cost-to-complete forecast
- How should we allocate shared costs across projects?Inconsistent cost allocation
- The business case is already outdated before kickoff. What should happen?Stale investment rationale
- Can I use an AI estimate as the project commitment?Unvalidated model-generated estimate