1. Collect input data

Parametric estimating is an estimating technique in which an algorithm is used to calculate the cost based on historical data and project parameters. Parametric estimating uses a statistical relationship between historical data and other variables (e.g. construction area in square meters, mass of plant components, volume of concrete, length of cables, etc.) to estimate the parameters of an activity, such as the cost to determine a budget.

Durations can be quantitatively determined by multiplying the quantity of work to be performed by the number of working hours per work unit. This technique produces results with a higher level of accuracy, in line with the sophistication of the model and the data it contains. Parametric estimates can be applied to the whole project, or to subsets of a project, and used in conjunction with other estimating methods, depending on...