Analogous estimating is an estimation method that uses the historical data of old projects to estimate the cost for similar new projects. Analogous estimation is also called top-down estimating and is used by project supervisors when there is limited information regarding the current project.
Analogous estimation technique is an easy-to-implement technique that possesses a success rate of 60% compared to the initial estimates. In addition to the historical data, the team’s experience and expertise in judgment influence the accuracy of undertakings.
This article discusses the requirements and advantages of analogous estimation methods used in the building industry.
Certain parameters from the historical data are used to estimate similar parameters for the future activities of the project. Some examples of parameters used are the project’s scope, cost, and duration. Other scale parameters include the size, weight, and complexity of the project.
The basic requirements for analogous estimation are:
Analogous estimates are used in the following situations:
Analogous estimation is not an accurate project estimation technique, and it is found more appropriate for the initial planning stages of a project rather than the execution stages.
Analogous estimating is an estimation approach that uses the historical data of old undertakings to estimate the cost for similar new undertakings.
Data from previous and ongoing construction undertakings 2. The basic requirements for analogous estimation are: 1. undertaking must be similar to the current undertaking 3. For an entirely new undertaking, similar modules, activities, and data similar to the current undertaking are collected. 4. Participation of the undertaking manager and estimation team to make sure experienced judgment on the estimates.
Analogous estimation is not an accurate project estimation technique, and it is found more appropriate for the initial planning stages of a project rather than the execution stages.