Comparative By Analogy

As an alternative to the parametric method, the comparative method of estimating can be used for the preparation of the budget. When a new project is very similar to another project recently completed, a quick comparison can be made of the salient features. This method is based on the costs of a simplified schedule of major components which were used on previous similar jobs. It may even be possible to use the costs of a similar sized complete project of which one has had direct (and preferably recent) experience. Due allowance must clearly be made for the inevitable minor differences, inflation and other possible cost escalations. An example of such a comparative estimate is the installation of a new computer system in a building when an almost identical (and proven) system was installed 6 months earlier in another building. It must be stressed that such an estimate does not require a detailed breakdown.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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