How do you estimate project costs?
project managers are expected by customers
and stakeholders to deliver a definitive and functional cost estimate in a timely manner. How do project managers do this? Good question. As you read, there are three levels of estimation in a project: the WAG, the SWAG, and the “you bet your job on this figure” estimates. Actually, they are referred to in industry as, the “Order of Magnitude” the “Budget,” and the “Definitive” cost estimates. The PMBOK addresses them under Analogous, Parametric, and Bottom-up estimates respectively (PMBOK pp. 172-173). Explain which of the three is used where in the project lifecycle
In the cost estimation process, every activity of a certain project is estimated and the best part about this process is it makes use of the three tools within the overall process. The three primary tools are known as Analogous, parametric and Bottom up estimation costs. The former two methods, Analogous and Parametric estimation is known as the top-down
