What is the outcome of lack of understanding of project requirements during estimation?

When estimators lack a clear understanding of project requirements, the most likely outcome is inaccurate estimates. This occurs because the estimation process heavily relies on the details and specifics of the project to determine costs, resources, and timelines. Without a comprehensive grasp of what is required—such as specifications, materials, labor needs, and project scope—estimators may miscalculate the quantities and costs involved. This can lead to underestimating or overestimating various elements of the project, resulting in budgets that do not align with actual project needs or financial constraints. Therefore, inaccurate estimates can cause significant disruptions in project planning and execution and may even jeopardize the project's success overall.

In contrast, options like enhanced collaboration, improved cost management, and accurate resource allocation depend on thorough understanding and effective communication regarding project requirements, which are jeopardized when this understanding is lacking.