Project estimation techniques refer to the procedures and tools used to develop rough calculations of various aspects of any project. An excellent example of this is a project cost estimate that provides an overview of the anticipated expenses associated with the project.
Whenever stakeholders or clients require information on any project aspect, these techniques help project managers evaluate realistic numbers essential to plan a project successfully.
List of techniques are as follows:
- Top down estimate
- Bottom up estimate
- Analogues estimating
- Parametric estimate
- Three point estimate
- What if analysis
Project estimation techniques are important to accurately estimate several project aspects such as time, cost, scope, and more. An accurate estimate isr required for project managers to plan and execute projects effectively.
