My Communities

Both approaches are equally useful in different situations. There are certain activities one cannot get their cost parametrically but through top-down or bottom-up approaches.

In my organization, we usually used a mixed of top-down and parametric approaches, because top-down is easier and does not take longer time and extra resources; while parametric is simpler when the price per unit is known.

Bottom-up approach is the best one.
bottom-up estimation is often the best approach. By breaking down the project into smaller components, it allows for a more thorough and precise estimation of costs.

Bottom-up estimation is often the best approach. By breaking down the project into smaller components, it allows for a more thorough and precise estimation of costs.
It is more efficient by combining these three approaches

In my point of view parametric approach is better other than others for estimating cost because it provide more accurate results.

One of domain that use parametric budgeting is construction sector. But you will never find only parametric budjeting. Worker wages may vary from one area to an other. Some parts to be manufactured needs to divide in many activities to be closer to the real price.

Parametric is the best approach as it will provide accurate information and it is simpler

I believe that you should use the Top -Down approach whenever possible because the seniors in the project may have experiance on the project activity and can help us in estimating the costs easily .

In my opinion, the most effective is using all three. Using the parametric first and the as much as possible to try ensure a good proportion of the budget is accurate as possible. Then use a mix of top-down and bottom-up to trial and error budget. I would personally keep answers seperate and then take the average of the predictions to account for both out of tuch and dishonesty from both sides.

I believe the best approach is combining the three approaches where possible

For me Parametric approach is the best way because this method uses statistical relationships between historical project data and project characteristics to estimate costs. It's effective for projects with well-defined parameters and historical data. It offers a balance between speed and accuracy but may require significant effort to develop accurate parametric models.

I believe that whenever possible,you should use a combination of at least two forms of approach to give a budget that yields minimal complications in execution of the project.
A combination of Parametric approach and Bottom-up approach is great. The parametric approach yields estimates which are derived using calculations from existing cost variables and data from past or related projects and applying them to the current project. The bottom-up approach would however complement it, in that the cost estimates would be provided by individuals in "the know" since they are directly involved in expenditure hence cost estimates would be more realistic having factored in changes such as inflation etc.
The parametric approach would also reduce the margin of excesses created by dishonest employees.

Very true

In my clime, budgeting is one of the most inconsistent items i always encounter because of the ever increasing inflation rate.

I believe that the top- down approach is best because it could apply to everything and as long as it gives opportunity to many contributions and research, the best prices would be reached and on time.

I agree with @eltonjames, especially when the project manager doesn't have experience in cost estimatives, budget, and, plus it can be a better way to learn about it for the next project.

I believe that the top- down approach is best because it could apply to everything and as long as it gives opportunity to many contributions and research, the best prices would be reached and on time.