rough order of magnitude (ROM)

Definition

An estimate of costs and time provided in the early stages of a project when its scope and requirements has not been fully defined. An ROM is used to reduce the uncertainty of cost outcomes for both parties when project details have yet to be identified.

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You should always try to make sure that you know how the rough order of magnitude may affect the market place.

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The company established a rough order of magnitude for their client before beginning the project, but quickly realized that the project was going to take far more work and capital than anticipated.

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After discussing the idea that afternoon and casually considering its possibilities, both companies agreed to meet again after determining the potential project's rough order of magnitude.

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