Question: How do you estimate project cost/ contingency?
Summary of video:
- Use different types of estimating for different types of projects.
- Top down
- Bottom up (top down and bottom up are compared and explained here: https://www.liquidplanner.com/blog/how-long-is-that-going-to-take-top-down-vs-bottom-up-strategies/)
- Parametric (unit-based) (explanation here: https://www.projectmanagement.com/wikis/509716/Parametric-Cost-and-Duration-Estimation)
- Three point estimating (O + 4M + P) / 6 (more explanation of that here: https://www.projectmanagement.com/wikis/368763/3-Points-Estimating)
- Analogous (comparative) – use prior estimates
- Set contingency at 10% (20% if high uncertainty) in the absence of any other guidelines