Cost Estimate

Definition

A pre-work prediction of a task's cost — typically effort x rate plus direct purchases. Kept as an immutable record so it can later be compared with actuals.

Formula

Estimate = Σ (hours x hourly rate) + direct costs

Worked Example

Task: build payment-reconciliation service.

Backend engineer   80 h x $60 = $4,800
QA engineer        20 h x $45 =   $900
Cloud (test env)               =   $300
                                -------
Total estimate                  $6,000

Interpretation & Pitfalls

Never overwrite an estimate with the actual — the gap between them is the most valuable management signal you have. Re-baseline with a NEW estimate record if scope changes.

In TupicFinance

Estimates live in their own table (Layer 1 of the task-cost architecture), immutable by design.