As the name suggests, parametric estimates are based on parameters that define the complexity, risk and costs of a program, project, service, process or activity. Parametric estimating is a technique that is essential for any project management team and or project management team leader to become comfortable with using, as the use of parametric estimating provides an invaluable service in the course of the project. Its mission is to provide and support safe, reliable, and cost effective transportation options to improve livable communities and. An introduction to parametric estimating conquest consulting group. A parametric estimation model is a mathematical representation of cost relationships that provides a logical and predictable correlation between the physical or functional characteristics of a project and its resultant cost ispa, 2008. An example of the parametric cost estimating method. In fact, the parametric estimating handbook says that early costing cannot be done effectively any other way. This document is also not a user manual on any specific cost estimating system. Parametric estimating refers, primarily, to an estimation technique which utilizes the statistical relationship that exists between a series. Information on social cost estimation can be found in the epa economic guidelines and the u. First, you define the specifications of each unit of the deliverable. Wolski consulting under contract to the ministry of transportation developed the elemental parametric method of estimating described in this manual.
Get the latest updates on nasa missions, watch nasa tv live, and learn about our quest to reveal the unknown and benefit all humankind. A cer is an equation used to estimate a given cost element using an established relationship with one or more independent variables. This second edition of the parametric estimating handbook is a comprehensive guide for industry and government acquisition professionals who prepare, evaluate i. Parametric cost estimating handbook how is parametric cost estimating handbook abbreviated. How to estimate the cost of early concept projects using. Parametric estimating project management knowledge. Parametric cost estimating of highway projects using neural networks by o amr s. Cost estimating body of knowledge cebok is iceaas official training course material, conveniently available on a usb flash drive.
This is because parametric estimating takes into consideration many factors when developing the estimates. Army corps of engineers preparing activity naval \1\facilities engineering1 command. Case study a parametric model for the cost per flight hour. Jan 29, 2019 project estimation is the most fundamental aspect of project management pm. This parametric estimating handbook is a comprehensive, all in one place guide for industry and government acquisition professionals who prepare, evaluate, or negotiate proposals which use parametric estimating techniques or for project stakeholders who wish to gain a better understanding of the application and use of parametric cost. The nasa deferred maintenance parametric estimating guide version 2 for nasas.
Pdf estimating building construction costs by production. In very simple terms, you can set up models or template projects that take historical information as the input. Parametric cost estimating couples a structured estimating process with statistically based parametricpredictive modeling methods to provide a basis for high confidence estimates. Cu alumni and defence conference war museum, athens, 1st june 2017 case study a parametric model for the cost per flight hour cpfh michail bozoudis. Estimating building construction costs by production processes. Navsea 2005 cost estimating handbook, provides an explanation of the overall process of developing cost estimates for major acquisition.
Request pdf on oct 17, 2018, john vail farr and others published cost estimating techniques find, read and cite all the research you need on researchgate. Modeling the parametric construction project cost estimate. Em cost estimate development handbook emcbc department of. Although not previously collected to this standard, existing nps asbuilt cost information may also be evaluated, processed and analyzed to this same.
Download handbook construction cost estimating pdf. Cost estimating requirements handbook national park service february, 2011. Parametric estimating is a technique that develops estimates based upon the examination and validation of the relationships which exist between a projects technical, programmatic, and cost characteristics, and the resources consumed during its development, manufacture, maintenance, andor modification iceaaispa parametric estimating. Parametric estimating handbook, 4th edition mafiadoc. Appendix g parametric cost estimating initiative closure report appendix h space systems cost analysis group risk summary. Luckily, parametric estimating is fairly easy to implement. Oct 15, 2017 parametric estimating is one of the most accurate techniques for determining a projects duration and cost. In many cases the model that you use to do the estimate is actually doing the design of the project for you as it is producing the cost. The third edition was sponsored by the defense logistics agency dla, defense contract management agency dcma and defense contract audit agency dcaa. Appendix g parametric cost estimating initiative closure report appendix h space systems cost analysis group risk summary appendix i space system cost analysis group, nonrecurring and recurring cost definitions and cost accounting guidelines.
Parametric estimating is one of the most accurate techniques for determining a projects duration and cost. Model to predict cost estimate to an acceptable degree of accuracy. Ispadace parametric cost estimating 4 march 2010 ver 3. This paper focuses on improving the current parametric cost estimating method used as referenced in navseas cost estimating handbook. Together, parametric estimating and parametric analysis constitute parametric cost analysis. Analogous estimating vs parametric estimating for pmp exam. Cost estimating fundamentals and tricks of the trade. The methodology outlined in this guide is a compilation of best practices that federal cost estimating organizations and industry use to. Popular estimating misconceptions not only do customers and sadly, some in the. Highways cost estimating using the elemental parametric method. Section 1, introduction, this section provides the purpose of the cost estimating guideline, general cost estimating concepts, and introduces each of the sections. Nasa has since developed a cost estimating handbook that reflects a renewed appreciation. Parametric cost estimating process for construction project design costs. The nasa deferred maintenance parametric estimating guide.
Parametric cost estimating handbook how is parametric cost. You will also get to know about the difference between analogous and parametric estimation. In other words, the cost estimation methodology in this manual is meant for private cost estimation, not social cost estimation. Case study a parametric model for the cost per flight hour cpfh. Aug 31, 2017 a parametric estimate is an estimate of cost, time or risk that is based on a calculation or algorithm. This parametric estimating handbook is a comprehensive, all in one place. Parametric cost estimating system paces1, an accepted estimating tool for federal construction projects. Parametric estimating use of a statistical relationship between historical data and other variables for example, lines of code in software development to calculate an estimate for activity parameters, such as scope, cost, budget, and duration. Jan 30, 2019 parametric cost estimating couples a structured estimating process with statistically based parametric predictive modeling methods to provide a basis for high confidence estimates. Based on assumptions made, you can duplicate that information for each new estimate. Joint agency cost estimating relationship cer development. Parametric cost estimates are a result of a cost estimating methodology using. A parametric estimate is an estimate of cost, time or risk that is based on a calculation or algorithm.
To the best of our knowledge, the methodology and information used in developing the estimating. Advantages of parametric estimating project management. According to dysert 2005, parametric cost estimating. The 2008 nasa cost estimating handbook ceh is a reorganized and updated handbook that. Analogous and parametric estimating techniques are most commonly used methods. This handbook provides a variety of statistical techniques to help equip the analysts toolboxes for attacking a range of estimating problems and data issues. Highways cost estimating using the elemental parametric method version 1. Parametric cost estimating are widely used for bidding on a contract, input.
Use of the ed material apart from this ufc must have the permission of the holder. Pei parametric estimating handbook, can be found through the. Parametric cost estimating handbook listed as pceh. Cost estimating handbook december 2002 forest service, southwest region v bureau of land management, nstc acronyms and abbreviations acbms asbestos containing building materials. Parametric estimates are brilliant at the early and concept stages of the project.
The dm method also includes system condition crv percentages. Currently, weight is used as the most common variable for determining cost in the parametric method because its a consistent physical property and most readily available. Parametric analysis is the process of determining the highly predictive equations necessary for parametric estimating. As the name suggests, parametric estimates are based on parameters that define the complexity, risk and costs of a program, project, service, process or. Cost estimating and cost management tools continue to be developed and will be. Readers may wish to pursue outside sources, such as published material or cost estimating courses, if they want to learn how to estimate. Parametric methods are often used in early estimating, such as planning. Section 2, cost management process, discusses estimating concepts throughout the project development stages and the detailed estimating process throughout the project development phases. Parametric estimating is a technique that uses validated relationships between a projects known technical, programmatic, and cost characteristics and known historical resources consumed during the development, manufacture, modification, deployment, andor disposal of an end item. Cost estimating requirements handbook, february 2011. The parametric estimating handbook, the gao cost estimating guide, and various agency cost estimating and contract pricing handbooks will typically. Ispa was one of the contributors to the third edition of the parametric estimating initiative pei parametric estimating handbook. The parametric estimating handbook, the gao cost estimating guide, and various agency cost estimating and.
The following provides a brief summary of each section. The main advantage of parametric estimating is that it is believed to have a higher accuracy than other types of estimating techniques bottomup, topdown, analogous. The purpose for this cost estimating handbook handbook is to provide. The contingency analysis models should be able to produce a pdf and a cdf for the project. Parametric cost estimating handbook how is parametric. Dd forms 91, the parametric cost engineering system paces. Parametric modeling takes its name from the parameters or variables that are modified during the project simulation process. Section 1, introduction, this section provides the purpose of the cost estimating guideline, general cost estimating concepts, and introduces each of. Its mission is to provide and support safe, reliable, and costeffective transportation options to improve livable communities and. Parametric estimating linear regression there are a variety of resources that address what are commonly referred to as parametric or regression techniques. Parametric cost estimating is a parametric technique uses regression or other statistical methods to develop cost estimating relationships cers. Cebok international cost estimating and analysis association.
Parametric estimating models benchmark estimating software. Introduction it is a wellknown fact that the earlier cost planning is started on. You will find definitions, detailed description, and examples of these techniques in this post. Improving the parametric method of cost estimating. Johnston 1960, probably the first book on parametric cost analysis, provides foundational theory, methods, and results from case. Dod parametric cost estimating handbook 2nd ed statistics. Construction cost estimating any ed material included in this ufc is identified at its point of use. Jan 18, 2018 analogous estimating vs parametric estimating. Cebok is a userfriendly cost estimating and analysis training resource, with information organized into 16 interactive modules within five general subject areas, designed to cover all of the topics that represent the body of knowledge that iceaa promotes. Download handbook construction cost estimating pdf quantity take off qto estimating handbook pdf the association for the advancement of cost engineering aace international publishes cost engineering community recommended practices. Dod parametric cost estimating handbook 2nd ed free ebook download as pdf file.
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