This section covers the various ways to estimate costs for a project.
- Analogous Estimate – an estimate that is based on other project estimates
- Parametric Estimate – using average costs per unit, based on costs from other projects
- Bottom-Up Estimate – identifying the cost of each item in each activity of the project
- Activity-Based Estimate – reorganising estimates from multiple vendors so that those costs associated with a particular activity are grouped by adding the activity code to the detailed estimate.
- Read the the section Estimating Costs to Compare and Select Projects in the prescribed textbook (Web | PDF | EPUB | MOBI), Chapter 12 (page 108 to the top of 112 in the PDF version).
- WEnote: Select a method outlined in the chapter and share at least one strength and one weakness of the approach. e.g. “A key strength of Bottom-up estimating is …”, “A weakness of Parametric estimating is …”
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