Sample interview questions: How do you handle estimating projects with uncertain or volatile market conditions?
Sample answer:
Approaches to Estimating Projects with Uncertain Market Conditions:
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Scenario-based Estimation: Develop multiple scenarios based on different market conditions and estimate the project cost for each scenario. This allows for flexibility and risk mitigation.
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Probabilistic Estimation: Use statistical techniques to quantify the uncertainty associated with market conditions. This provides a range of possible project costs and their likelihoods.
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Contingency Planning: Establish a contingency budget or reserve fund to account for potential cost overruns due to market volatility. This ensures project continuity and mitigates financial risks.
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Market Research and Analysis: Continuously monitor market conditions and gather data on historical trends, forecasts, and industry insights. This information helps refine estimates and identify potential risks.
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Collaboration with Subject Matter Experts: Engage with experts in relevant fields (e.g., procurement, supply chain) to gain insights and develop more… Read full answer