At the proposal stage, a contractor may well be able to give only a 'ball park figure' to give a client or sponsor an approximate 'feel' of the possible costs. The estimating method used in this case would either be subjective or approximate parametric. In either case the degree of accuracy would largely depend on the experience of the estimator. When using the subjective method, the estimator relies on his experience of similar projects to give a cost indication based largely on 'hunch'. Geographical and political factors as well as the more obvious labour and material content must be taken into account. Such an approximate method of estimating is often given the disparaging name of 'guesstimating'.

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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