![]() 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. These estimates tend to be inaccurate, since there is no detailed analysis to support them. Over time, more detailed bottom-up estimates then replace the original top-down estimate. ![]() ![]() The term bottom-up estimating gives a hint about the underlying concept: costs, durations or resource requirements are estimated at a. Despite its inaccuracy, top-down estimating is frequently used, typically at the beginning of a project when the details are still being examined. What Is Bottom-Up Estimating Bottom-up estimating is a technique in project management for estimating the costs or duration of projects and parts of a project (PMBOK, 6 th edition, ch. This type of estimate is generally more accurate than other methods since it is looking at costs from a more granular perspective. 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 uses the estimates of individual work packages which are then summarized or 'rolled up' to determine an overall cost estimate for the project. The estimating process is derived from the opinions of a group of experienced managers, possibly supplemented by outside experts. 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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