Parametric Estimating Glossary Definition

Term Parametric Estimating
Definition

Parametric Estimating uses a measurable relationship, such as cost per unit or hours per item, to calculate an estimate.

Context & Usage

It can be efficient and consistent when reliable historical data and a valid estimating parameter are available.

Project managers, sponsors, and project-controls staff use this concept in budget reviews, performance reporting, forecasting, and variance conversations.

Related concepts include Budget, Cost Baseline, Planned Value, Earned Value, Actual Cost and Cost Variance.

Categories Knowledge Management and Content Governance