considerable care therefore has to be taken to ensure that NLnet are
not overloaded, nor that the EU Auditor is given grounds to become
"suspicious" because of a dozen or more alterations to the MOU.
-and write your nickname (i.e. andrey etc.).
\ No newline at end of file
+and write your nickname (i.e. andrey etc.).
+
+# Budget Estimation
+
+Working out a time taken (and budget) for a sub-tasks requires
+guestimating. A small self-contained task should take
+approximately **1/2 a day up to 8 days (+/- 40%)**.
+
+The total for a group of sub-tasks should be approximately
+**5-25 days**. If a single tasks looks like it might take
+longer than 8 days, it is **required** to break it into
+smaller subtasks. Big tasks can quickly get out of hand, so
+if in doubt, splitting a task is the better option.
+
+Assume *1 month is appx EUR 3000* (this is an average; the value
+may be higher depending on circumstances) and back-calculate.
+
+These numbers come from Luke's
+[comment #8 on bug #1126](https://bugs.libre-soc.org/show_bug.cgi?id=1126#c8)
+
+Statistically speaking using the +/- 40% variance for each task,
+and adding up over 20+ tasks will give a time estimate
+**that is accurate to +/- 10%**.
+
+*(Any sources on this?)*
+
+However it is very important to have a *clear idea of what is
+actually needed*, and to *not leave anything out*.
+
+For example, when determining the task of adding instructions:
+
+- For each instruction perform a thought experiment:
+ "how many lines of HDL, how many unit tests?"
+- Then from *- past experience -* estimate the total number
+ of days.
+- Assume 1 month is appx EUR 3000 and back-calculate.
+- Put that number for each instruction (or group)
+into comment 0, add them up, and make that the total
+for the task.
+
+*(Luke has used this method for the last 5 years based on 20 years
+of project management, and it is **expected for the team to familiarise
+themselves with it**)*
+
+Also, make sure not to forget including **documentation** in your
+estimate. This ensures a portion of grant money is allocated
+to actually documenting the work involved.
+
+Without documentation, it is not only difficult to teach newcomers about
+the code in question, it makes it difficult to come back to the code
+6-12 months later for maintenance and/or improvement
+(not a rare situation in LibreSOC).
+
+Don't forget to ask fellow project for help, they might be able
+to help determine the scope of the work involved.
+