Price, a parametric cost estimation method

The parametric method is a cost estimation method that involves estimating the cost of a project on the basis of several characteristic parameters (usually between two and five). Depending on the project, these may be mass, volume, length, number of lines of code for IT projects, etc.

The parametric method can be used to create preliminary budgets with an accuracy of +/- 30%. It is an invaluable simulation tool during the pre-project phases.

This sheet describes the so-called "parametric" method, which proposes an evaluation of the development and production costs of a system on the basis of physical parameters called influential parameters, such as quantity, mass or volume.