The 3 Major Parts to Project Estimation
- Effort estimation
- Cost estimation
- Resource estimate
The cost of a structure is calculated approximately as the total cubical contents (Volume of buildings) multiplied by Local Cubic Rate. The volume of building is obtained by Length x breadth x depth or height. The length and breadth are measured out to out of walls excluding the plinth off set.
While accurate estimates are the basis of sound project planning, there are many techniques used as project management best practices in estimation as – Analogous estimation, Parametric estimation, Delphi method, 3 Point Estimate, Expert Judgment, Published Data Estimates, Vendor Bid Analysis, Reserve Analysis, Bottom-Up Analysis, and Simulation. Usually, during the early stages of a project cycle the project requirements are feebly known and less information is available to estimate the project. The initial estimate is drawn merely by assumptions knowing the scope at a high level, this is known as ‘ball park estimation‘, a term very often used by project managers.
- Estimation need not be a one-time task in a project. It can take place during −
- Acquiring a Project.
- Planning the Project.
- Execution of the Project as the need arises.
- Project scope must be understood before the estimation process begins. It will be helpful to have historical Project Data.
- Project metrics can provide a historical perspective and valuable input for generation of quantitative estimates.
- Planning requires technical managers and the software team to make an initial commitment as it leads to responsibility and accountability.
- Past experience can aid greatly.
- Use at least two estimation techniques to arrive at the estimates and reconcile the resulting values. Refer Decomposition Techniques in the next section to learn about reconciling estimates.
- Plans should be iterative and allow adjustments as time passes and more details are known.