Question

Incorrect cost estimates can negatively impact project schedules. Consequently, it is critical to have an effective estimating process, which can vary by project. For this discussion, post the following:

• Provide a brief project scenario (describe the purpose of the project) and use Bottom-Up Estimation approach. Be sure to cite the source of the estimation approach in your post.
• Provide reasons for why the Bottom-Up Estimation approach is appropriate for the given situation.

Answer 1

Bottom up estimate starts at the deliverables level where each components is analysed for the cost associated with it and the effort needed to accomplish it. In this way, it is different from the top down approach where the decisions are maade at the top level and the budget is allocated to different activitiess down the line. This type of estimate is a time consuming one but at the same time, it provides more accurate estimate.

A hypothetical project is a flood relief work to be carried out in an affected territory. The place has four different zones and each one has different set of deliverables, such as providing medical assistance, making makeshift stay arrangements, maintaining sanitation and food supplies, road clearing and evacuation among other tasks. Each zone has different requirements, and the work to be done and the cost to be incurred can only be determined when the actual survey is done. It will take a day for the team to survey, but it will give the exact estimate of work to be done and cost to be alocated. This work is not suitable for top down estimate becuse there is no way the top management can determine the cost without assessment of damages and the work to be done sitting in the head office.