What are the different cost estimation methods?

What are the different cost estimation methods?

There are several cost estimation methods, including expert judgment, analogous estimating, parametric estimating, and bottom-up estimating. Would you like to know more about any specific method?

Can you explain the bottom-up estimating method?

Bottom-up estimating involves breaking down a project into smaller components and estimating the costs for each component individually. These costs are then aggregated to get the total project cost.

What are the advantages of using parametric estimating?

Parametric estimating uses statistical relationships between historical data and other variables to calculate costs. It's quick and can be very accurate if the data is reliable.

How do I choose the right method for my project?

Choosing the right method depends on factors like project size, complexity, available data, and the level of accuracy required. It's often helpful to combine methods for better accuracy.