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In the context of Figure 4, the P50 cost is represented as âcâ dollars. The P50 estimate is one with equal chance of project overruns or underruns up till when the project scope can be finalised. The P90 value is an estimate of the project cost based on a 90% probability that the cost will not be exceeded.his arises as the P90 cost estimation was adopted at the early stage during project scoping. Had the P50 cost estimate been adopted, there would have been a deviation of $7 million between the actual ($69 million) and budgeted P50 figure ($62 million). The project would have been under-budgeted.
A cost estimate is the approximation of the cost of a program, project, or operation. The cost estimate is the product of the cost estimating process.The cost estimate has a single total value and may have identifiable component values.A problem with a cost overrun can be avoided with a credible, reliable, and accurate cost estimate. cost estimate is often used to establish a budget as the cost constraint for a project or operation. In project management, project cost management is a major functional division. Cost estimating is one of three activities performed in project cost management.