It is the responsibility of the project manager to make accurate estimations of effort and cost. This is particularly true for projects subject to competitive bidding where a bid too high compared with competitors would result in loosing the contract or a bid too low could result in a loss to the organisation . This does not mean that internal projects are unimportant. From a project leaders estimate the management often decide whether to proceed with the project. Industry has a need for accurate estimates of effort and size at a very early stage in a project. However, when software cost estimates are done early in the software development process the estimate can be based on wrong or incomplete requirements. A software cost estimate process is the set of techniques and procedures that an organisation use to arrive at an estimate. An important aspect of software projects is to know the cost, The major contributing factor is effort.
