{"id":5197,"date":"2023-02-27T02:24:39","date_gmt":"2023-02-27T02:24:39","guid":{"rendered":"https:\/\/course.oeru.org\/ipm103\/?page_id=5197"},"modified":"2023-02-27T02:24:39","modified_gmt":"2023-02-27T02:24:39","slug":"methods-for-estimating-costs","status":"publish","type":"page","link":"https:\/\/course.oeru.org\/ipm103\/learning-pathways\/budget\/methods-for-estimating-costs\/","title":{"rendered":"Methods for estimating costs"},"content":{"rendered":"<div id=\"content\" class=\"mw-body container\" role=\"main\">\n<div class=\"row\">\n<div class=\"col-md-12\">\n<div class=\"panel\">\n<div class=\"panel-body\">\n<div id=\"bodyContent\">\n<div id=\"mw-content-text\" lang=\"en\" dir=\"ltr\" class=\"mw-content-ltr\">\n<div class=\"thumb tright\">\n<div class=\"thumbinner thumbnail\" style=\"width:302px;\"><a href=\"https:\/\/wikieducator.org\/File:Calculator-money.jpg\" class=\"image\"><img loading=\"lazy\" decoding=\"async\" alt=\"\" src=\"\/\/wikieducator.org\/images\/thumb\/0\/00\/Calculator-money.jpg\/300px-Calculator-money.jpg\" width=\"300\" height=\"200\" class=\"thumbimage img-responsive\"><\/a>  <\/p>\n<div class=\"thumbcaption\">Estimating costs<\/div>\n<\/div>\n<\/div>\n<p>This section covers the various ways to estimate costs for a project.\n<\/p>\n<ul>\n<li> <b>Analogous Estimate<\/b> &#8211; an estimate that is based on other project estimates\n<\/li>\n<li> <b>Parametric Estimate<\/b> &#8211; using average costs per unit, based on costs from other projects\n<\/li>\n<li> <b>Bottom-Up Estimate<\/b> &#8211; identifying the cost of each item in each activity of the project\n<\/li>\n<li> <b>Activity-Based Estimate<\/b> &#8211; 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.\n<\/li>\n<\/ul>\n<p><br style=\"clear:both;\">\n<\/p>\n<div id=\"Reading\" class=\"panel iDevice\">\n\t<div class=\"panel-heading idevice-heading\">\n\t\t<div>\n\t\t\t<img decoding=\"async\" class=\"pedagogicalicon\" alt=\"reading\" src=\"https:\/\/course.oeru.org\/ipm103\/wp-content\/themes\/oeru_course\/idevices\/Icon_reading.png\">\n\t\t<\/div>\n\t\t<div>\n\t\t\t<h2>Reading<\/h2>\n\t\t<\/div>\n\t<\/div>\n\t<div class=\"panel-body\">\n\t\t<div class=\"col-md-12\">\n\t\t\t<\/p>\n<ol>\n<li> Read the the section <i>Estimating Costs to Compare and Select Projects<\/i> in the prescribed textbook (<a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/opentextbc.ca\/projectmanagement\/Table-of-contents\/\">Web<\/a> | <a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/opentextbc.ca\/projectmanagement\/open\/download?filename=Project-Management-1464292370&amp;type=pdf\">PDF<\/a>), Chapter 12 (page 108 to the top of 112 in the PDF version).\n<\/li>\n<li> <b>WEnote<\/b>: Select a method outlined in the chapter and share at least one strength and one weakness of the approach. e.g. <i>&#8220;A key strength of Bottom-up estimating is &#8230;&#8221;<\/i>, <i>&#8220;A weakness of Parametric estimating is &#8230;&#8221;<\/i><br \/>Post your comment below and then look on the <a href=\"\/ipm103\/interactions\/course-feed\" title=\"Introduction to project management\/IPM103\/Feed\">course feed page<\/a> to see what others have posted.\n<p><div><p>You must be logged in to post to WEnotes.<\/p><\/div><br \/>\n<i>Note: Your comment will be displayed in the <a href=\"\/ipm103\/interactions\/course-feed\" title=\"Introduction to project management\/IPM103\/Feed\">course feed<\/a>.<\/i>\n<\/li>\n<\/ol>\n<p>\n<\/p>\n<p>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n<p><!-- \nNewPP limit report\nCPU time usage: 0.043 seconds\nReal time usage: 0.050 seconds\nPreprocessor visited node count: 128\/1000000\nPreprocessor generated node count: 858\/1000000\nPost\u2010expand include size: 3850\/2097152 bytes\nTemplate argument size: 1837\/2097152 bytes\nHighest expansion depth: 7\/40\nExpensive parser function count: 0\/100\n--><\/p>\n<p><!-- Saved in parser cache with key we_en-mw_:pcache:idhash:178412-0!*!0!*!*!2!* and timestamp 20230227022246 and revision id 1018440\n -->\n<\/div>\n<div class=\"visualClear\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"row\">\n<div class=\"col-md-12\">\n<ul class=\"pager\">\n<li class=\"previous\">\n            <a href=\"\/ipm103\/learning-pathways\/budget\/video-signpost\">\u2190 Previous<\/a>\n          <\/li>\n<li class=\"next\">\n            <a href=\"\/ipm103\/learning-pathways\/budget\/estimating-methods-quiz\">Next \u2192<\/a>\n          <\/li>\n<\/ul><\/div>\n<\/p><\/div>\n<div id=\"wenote-ids\"><script type='text\/javascript' id='wenotes-ids'>\n    var WEnotesSite = \"https:\/\/wikieducator.org\";\n    var WEnotesPath = \"\/Introduction_to_project_management\/IPM103\/Budget\/Methods\";\n    var WEnotesSiteID = \"0e3d258fbd36841f92259eefcd41d5e9\";\n    var WEnotesPathID = \"822743202b5e8e2bd6b9ae5375b8826f\";\n    var WEnotesIDs = { site: \"https:\/\/wikieducator.org\", path: \"\/Introduction_to_project_management\/IPM103\/Budget\/Methods\", site_id: \"0e3d258fbd36841f92259eefcd41d5e9\", path_id: \"822743202b5e8e2bd6b9ae5375b8826f\" };\n<\/script><\/div>\n<\/div>\n<footer><\/footer>\n","protected":false},"excerpt":{"rendered":"<p>Estimating costs This section covers the various ways to estimate costs for a project. Analogous Estimate &#8211; an estimate that is based on other project estimates Parametric Estimate &#8211; using average costs per unit, based on costs from other projects Bottom-Up Estimate &#8211; identifying the cost of each item in each activity of the project [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":5191,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-5197","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/course.oeru.org\/ipm103\/wp-json\/wp\/v2\/pages\/5197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/course.oeru.org\/ipm103\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/course.oeru.org\/ipm103\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/course.oeru.org\/ipm103\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/course.oeru.org\/ipm103\/wp-json\/wp\/v2\/comments?post=5197"}],"version-history":[{"count":1,"href":"https:\/\/course.oeru.org\/ipm103\/wp-json\/wp\/v2\/pages\/5197\/revisions"}],"predecessor-version":[{"id":5198,"href":"https:\/\/course.oeru.org\/ipm103\/wp-json\/wp\/v2\/pages\/5197\/revisions\/5198"}],"up":[{"embeddable":true,"href":"https:\/\/course.oeru.org\/ipm103\/wp-json\/wp\/v2\/pages\/5191"}],"wp:attachment":[{"href":"https:\/\/course.oeru.org\/ipm103\/wp-json\/wp\/v2\/media?parent=5197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}