How should estimates be documented for future reference?

Documentation of estimates as detailed reports with explanations and assumptions is crucial for several reasons. First, it provides a clear and comprehensive record of the estimation process, enabling anyone reviewing the project in the future to understand the rationale behind the numbers. This transparency is essential for accountability and can help identify any potential errors or oversight that may alter cost projections.

Second, detailed reports facilitate effective communication among team members and stakeholders. When estimates are documented with supporting information, it allows others to follow the logic used to arrive at the figures, making it easier for them to contribute to discussions, adjustments, or negotiations related to the project.

Additionally, well-documented estimates serve as a useful learning tool for future projects. By including explanations and assumptions, estimators can track the accuracy of their previous estimates, contributing to continuous improvement in their estimation skills and processes.

In contrast, options that suggest brief notes, verbal communication, or rough calculations without documentation lack the robustness and utility required for effective project management and historical reference. They may lead to misunderstandings, misinterpretations, and an inability to learn from past projects. Therefore, creating comprehensive and detailed reports is the best practice for documenting estimates.