Project Estimating Paper

Introduction Projects are different form one project to another. The most challenging job a project manager will have is properly estimating time, and cost because of the uncertainty of variables of each project. Using the correct technique and tools to deal with the certainty, or uncertainty of a project is important to give an accurate estimate. Using the proper technique and tools, a project manager can deal with the challenges of estimating time, and cost to give an accurate estimate. Dealing with uncertain variables that challenge a project will give the project a successful outcome.
When and How Techniques Are Used Expert Judgment is using a subject matter expert that provides estimates into the estimating based on expert experience in the subject. An expert judgment is most important when estimates are dependent on an unknown variable. This is where acquiring the expert to fill in the variables with knowledge from experience is necessary. Analogous estimating is used when costs from a previous project inputted can save time on estimating with the variations of know differences from past projects. This is important on known stable projects similar in use. Analogous analysis will make adjustments for variables known (PMI, 2008). Parametric Estimating can be used in small segments, or the complete project. This form of estimating relies on calculations using historical information and known variables of a stable project that has accurate data. This is used in construction where a known variable, such as price for square foot of concrete can be used to calculate the total dollar amount based on square footage. Bottom-up estimating is used when defined work packages are used to estimate the work involved and rolled up to the high levels. The work packages must be definable work for