These estimates tend to be more accurate than estimates derived from the top-down process. Bottom-Up EstimatingĪ better approach is a bottom-up estimate that employs a careful analysis of a project at the work package level, made by those people with the most experience in relation to the project. Instead, they are derived from general ratios, such as the average cost per square foot that the firm has experienced in the past. If the manager makes errors in the estimates, a bottom-up estimate provides the manager with. Laying out the project scope is often the most difficult part of the project. These estimates tend to be inaccurate, since there is no detailed analysis to support them. Benefits of utilizing bottom-up estimating 1. Over time, more detailed bottom-up estimates then replace the original top-down estimate. Despite its inaccuracy, top-down estimating is frequently used, typically at the beginning of a project when the details are still being examined. Or, estimates may be copied forward from the actual information from similar projects that the company has completed in the past, adjusting for any unique aspects of the project under consideration. Bottom-up estimating, also known as detail or engineering estimating, is the opposite of the top-down. Read more: Top-Down Estimating: Definition, Benefits and Examples. The estimating process is derived from the opinions of a group of experienced managers, possibly supplemented by outside experts. Top-down estimating may be most beneficial at the beginning planning stages of a project, where you can gain insight into what resources cost the most. Top-down estimating occurs when company management imposes a cost and/or duration on a project, usually without a detailed cost analysis.
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