Whereas one can use other techniques such as top-down estimation, parametric estimating, and expert judgment at any granular level, bottom-up estimation only relates to the smallest component of the project: the work package and the activities. Why is Bottom-Up Estimating Different from Other Techniques? To calculate the cost estimates, you will multiply the resource units assigned to the project by the time and price per unit. Remember, the duration an activity takes depends on the resources provided. However, you will learn that these estimates have certain interdependencies. These are estimating the project’s resource needs, estimating the time needed or duration, and estimating the costs. Note that there are three types of bottom-up estimates. Most people also consider it the definitive estimate as it has an accuracy of between -5% and +10%, as provided by the Project Management Institute. This technique is also known as deterministic or detailed estimating. ![]() It is usually done for work packages, which is the smallest part of the WBS, even though several people also suggest project activities.Īll in all, it deals with the most detailed level of the Work Breakdown Structure. You can easily establish that this technique estimates costs, durations, and resource requirements at a granular level just from its name. Keep in mind that such analyses begin with a rough order of magnitude before more accurate estimates are employed. ![]() It is considered as one of the most accurate ways of estimation. ![]() Bottom-up estimating is a unique technique in project management used to estimate the costs and duration of a project or its parts.
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