Principles of effective cost estimation

Principle 3: Base your estimates on past experience combined with knowledge of the current project.

• If you are developing a project that has many similarities with a past project:

  • You can expect it to take a similar amount of work.
• Base your estimates on the personal judgement of your experts

  or
  

• Use algorithmic models developed in the software industry as a whole by analyzing a wide range of projects.

  • They take into account various aspects of a project’s size and complexity, and provide formulas to compute anticipated cost.

Previous slide

Next slide

Back to first slide

View graphic version