Overview

When deciding what method to use when trying to estimate project costs, the project manager has a number of choices, depending on the project. The method chosen should take into account whether or not the organization has experience with similar projects and whether there is useful information to be derived from it. If no such history can be tapped, the project manager will have to take a different approach.

Instructions

Using the CCCOnline Library, or any other credible sources you may locate on the internet, address the following topics in your main post:

1. Describe the difference between parametric and analogous estimating techniques.
2. Illustrate the application of each method to a real or hypothetical project environment.
3. Summarize the following approaches to cost estimation, and illustrate each with an example:
   • Vendor Bid Analysis
   • Value Engineering
   • Life Cycle Costing