What serves as the cost baseline for a project?

The project estimate serves as the cost baseline for a project as it outlines the expected costs associated with the project and establishes a standard for measuring performance. It is a comprehensive evaluation that typically includes direct costs, indirect costs, and contingency funds. By having a clear and detailed project estimate, project managers can monitor progress, control costs, and create variance reports to evaluate whether the actual spending aligns with the planned budget. The project estimate becomes a reference point for tracking financial performance throughout the project lifecycle, which is critical for successful project management.

The other options do not provide the same purpose. The schedule relates to the timeframe for project delivery, while the contract primarily outlines the terms and conditions of engagement, including obligations and responsibilities, rather than financial specifics. Project submittals are documents that track project deliverables but do not serve as a basis for cost management. Thus, focusing on the project estimate provides the necessary financial framework for effective budgeting and financial control in project management.