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	<title>PMServicesNW &#187; top down estimating</title>
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		<title>4 Cost Estimating Techniques</title>
		<link>http://www.pmservicesnw.com/2010/09/4-cost-estimating-techniques/</link>
		<comments>http://www.pmservicesnw.com/2010/09/4-cost-estimating-techniques/#comments</comments>
		<pubDate>Wed, 01 Sep 2010 22:48:13 +0000</pubDate>
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				<category><![CDATA[Cost]]></category>
		<category><![CDATA[Planning]]></category>
		<category><![CDATA[bottom up estimating]]></category>
		<category><![CDATA[cost estimating techniques]]></category>
		<category><![CDATA[expert judgement]]></category>
		<category><![CDATA[parametric estimating]]></category>
		<category><![CDATA[top down estimating]]></category>

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		<description><![CDATA[By: Ray Myers, Jr., PMP There are 4 cost estimating techniques discussed in the PMBOK: Expert Judgment Influenced by variables such as labor rates, material costs, inflation, risk factors, etc. Guided by historical information and insights from prior similar projects May be used to determine whether to combine other estimating methods or reconcile differences between them Analogous or Top-Down Uses the actual costs of a previous, similar project as the basis for the new estimate Adjustments may be made for known differences in project complexity Less costly and time consuming than the other techniques Most reliable of the estimating techniques when the previous projects are similar in nature Bottom-up Uses the sum of the individual work components The cost of individual work packages or activities is summarized and rolled to higher levels for subsequent reporting and tracking purposes Accuracy is typically influenced by the size and complexity of the individual activity or work packages Parametric Uses statistical relationships between historical data and other variables Uses project characteristics in a mathematical model to estimate costs Can produce higher levels of accuracy depending on the underlying data used in the model About the Author: Ray Myers, Jr. is a PMP certified project [...]]]></description>
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