An estimation approach that relies on cost data from similar projects is known as which method?

An estimation approach that relies on cost data from similar projects is known as which method?

• A. Based on detailed quantity takeoffs
• B. Based on cost data from similar projects
• C. Based on vendor quotes for each line item
• D. Based on fixed unit rates with no history

Answer: (B)

This is analogous estimating. It relies on cost data from similar projects to form a quick, high-level projection for the current project. You start with a similar project’s historical costs and adjust for differences in size, scope, location, time (inflation), site conditions, and design complexity. It’s useful early in the project when there isn’t enough detailed design to do a bottom-up estimate, but its accuracy depends on how truly similar the reference project was and how well you adjust for differences. Why other approaches aren’t the fit here: using detailed quantity takeoffs builds costs from quantified items in the current design, requiring a well-developed design; obtaining vendor quotes for each line item relies on current bids for a fully defined scope; using fixed unit rates with no history lacks a basis in actual project data and can be unreliable.

This is analogous estimating. It relies on cost data from similar projects to form a quick, high-level projection for the current project. You start with a similar project’s historical costs and adjust for differences in size, scope, location, time (inflation), site conditions, and design complexity. It’s useful early in the project when there isn’t enough detailed design to do a bottom-up estimate, but its accuracy depends on how truly similar the reference project was and how well you adjust for differences.

Why other approaches aren’t the fit here: using detailed quantity takeoffs builds costs from quantified items in the current design, requiring a well-developed design; obtaining vendor quotes for each line item relies on current bids for a fully defined scope; using fixed unit rates with no history lacks a basis in actual project data and can be unreliable.