TOPIC: What is the difference between cost estimates and the project budget?

I'm struggling with what makes these different and needing some expert advice to clarify. It feels like the estimates and budget are the same thing?

Hi Lisa,

I would recommend to refer to Figure 7-8 from the PMBOK Guide to better understand the difference between the two. From there you can see that cost estimates can be derived for each activity, and (by cost aggregation) work package. When you sum up work package cost estimates and contingency reserves (which are also a form of cost estimates), you get the cost baseline. This plus the management reserves provide you with the project budget.

Does that help you clarifying the difference between the two concepts?

Gabriella