1) How are the Scope baseline or Cost baseline or Schedule baseline updated, after it has been baselined or approved?

2) Why is it necessary to factor in reserves into the Cost estimation and Budgeting Process? How is this related to Risk Management?

1. A baseline is a clearly defined beginning point for your project plan in project management. It's a constant against which you may assess and compare the progress of your project. This allows you to track your project's progress over time.
Let's imagine your project is scheduled to be completed in six weeks. Is that a good thing or a negative thing? You can know there's an issue if your schedule baseline takes four weeks to complete, and your team may need to make adjustments to speed up your progress.
 

The three components of a project baseline are typically scheduling, cost, and scope. These three baselines are frequently monitored, regulated, and reported independently to ensure that they are all on track. It may be referred to as once it has been fully integrated.

To establish a project baseline, you must first determine the project's scope. A scope statement, which is a set of project objectives and deliverables, can be used to do this. Break down all of the work that needs to be done to meet these deadlines into separate tasks and subtasks with full explanations.
The next step is to create a project timeline with specific due dates and a final deadline. A Gantt chart is a wonderful tool to employ here because it can be easily modified and adjusted to meet changing deadlines.
Estimate the time it will take to complete each activity and allocate resources accordingly. Now is the time to figure out how much your project will cost in total. Consider all pertinent considerations, such as hourly rates, available resources, and fluctuating PPC prices. This is a link

A baseline for a project is an example.
As an example of a simple project baseline, consider the following social media marketing campaign:
Your boss has asked you to put together a social media campaign to promote the launch of a new product. You've been given a project budget, and your objective is to raise brand awareness and drive early product sales.
As a result, your project's baseline might look like this:
500 direct sales (scope/deliverables)

One month's schedule

Price: €1,000

The advantages of a project baseline
There are three major advantages of having a project baseline that has been approved:
Estimates have been improved: The ability to compare your current cost, schedule, or scope to a baseline might reveal areas where a project has under- or over-performed. This knowledge can then be applied to future project plans and estimates to improve them.
Improved performance evaluations: As previously stated, a baseline serves as a benchmark against which a project's progress can be measured. It's tough to compare how a project is doing without one.
Earned Value Calculation: You can use earned value (EV) to compare actual performance to your strategy. But it's more than just a tool for evaluating performance. It also allows you to assess project patterns and predict whether or not a project will be completed on time.

2. The purpose of a professional cost estimator is to provide reliable information to project developers regarding the estimated expenses of their initiatives. When stakeholders have precise cost estimates, they may make informed decisions about project feasibility.

Quantity Takeoff: The estimator will design and precisely identify the materials required for the project. The entire estimate will be wrong unless the takeoff is exact.

Estimated Labor Hours: The estimator will utilize his previous experience to determine the number of labor hours required to accomplish a project. He'll factor in the varied degrees of labor productivity that can be expected depending on the project's complexity.

Estimating Labor Rates: A basic wage and benefit estimate for a certain craft is the first step in estimating labor rates. This calculation takes into account the costs of various taxes, such as FICA and FUI, as well as those imposed by the company. The estimate must also account for the probability of overtime work as well as the higher expenditures associated with these additional hours.

Material Costs: Estimating material costs is more difficult than it appears at first. The cost of a specific item varies substantially depending on current market demand and availability, the quantity necessary, transportation costs to site, and even exchange rates if the goods are being brought into the US from another country.

Costs of Equipment: The cost estimator must consider numerous elements while estimating equipment costs, including cycle times, equipment capacity, and the cost difference that arises if the equipment must be rented rather than owned.

Subcontractor Quotes: Specialty trades that work as subcontractors frequently finish portions of the project. Their estimates should take into account the same labor, material, and equipment expenses as the general contractor.

Indirect Costs: In the total estimate, a precise evaluation of indirect costs is vital. Land purchase, permits, design fees, office support, temporary on-site utilities, and mobilization are just a few of the factors that must be factored into an accurate project cost estimate.

Step-by-step explanation

It's almost difficult for the estimators' first estimate to match the project's ultimate price tag. Comprehensive estimations, on the other hand, enable engineers to make critical decisions. Developers can use the estimate to determine the feasibility and profitability of a project. The report of the estimator will also play a role in obtaining finance. Developers might make crucial decisions later in the project's development about modifications in project design and/or materials that effect cost positively or negatively. During the value engineering phase of our projects, for example, South Bay Construction will scrutinize the materials and design choices in the estimate in order to present the customer with solutions that add value while lowering costs.

Perhaps most essential, a precise estimate keeps everyone focused on completing a project on time and on budget. It makes a developer and a construction company liable for extra expenses and schedule delays. Each step of the estimation process at South Bay Construction is approached with honesty and sincerity. Our goal is to always give our clients the knowledge they need to make the best decisions possible on each project.