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Bottom up estimation instills team bonding and commitment among the project team members because if they are involved from the very basic level, they in turn get more committed and dedicated in achieving the project’s overall objectives. In order to correctly estimate the resources, each team member who has been assigned a particular task from a work break down structure should be given a authority to estimate the project’s resources. Bottom up estimation displays a more detailed overview of time and cost.

Parametric is an ideal approach for majority projects because of the element of calculating the actual cost estimates. however, it doesn't negate what the bottom-up and top-down approaches have to offer. In an ideal setting, majority projects are donor funded and often times, these donors want to know or have the opinions of the project implementers and beneficiaries. this is where the other two approaches come in handy.

However, using a WBS, where each of the tasks has been listed, it would really be easy to use the parametric approach then because it saves time in estimating costs per activity which the other two approaches seem to overlook because of the occurrence of consultations regarding the project budget.

I would prefer employing the bottom-up approach, firstly, it gives an opportunity to staff implementing the project to participate in the budget planning process, secondly it reduces pressure on the project manager in researching about the costs, this responsibility will fall on the project implementers.

I would prefer to use the Bottom-up approach. I choose this approach because I believe that when selecting a project team we will be having people who have some sort of experience in the the activities assigned to them. These activities may have smaller activities within themselves that may attract more costs, So with the experience of these individuals they can be able to identify these cost items and help make our budgets more realistic.

I think the bottom up approach is best in terms of verification of the assumptions made prior.

I think the most effective approach will be the parametric approach , because it will reduce any fruadulant behaviour associated with the budget , though it can give room to over budget , because buying thyings in bulk is cheaper than as a single entity.

As for me, it all depends on what project you are working on but parametric is best when a price unit is provided.

in my opinion, parametric is the best approach to calculate the budget. Because this is easy to calculate, and we do it ourselves. This approach also produces maximum results.

I think a combination of parametric and bottom-up approaches work better because it reduces under estimation of certain costs.
more so the people down are the ones in operations and understand reality out there better.
for the delays, top managers can just direct and command faster execution of such activity.

In my opinion, it's always important to combine methods and on my organization we normally create a project design group composed by staff from top, meddle and button project management and from the relevant project sectors. Normally, the small Top management group draft the budget and share with the rest for discussions and inputs however sometimes it comes from the button for discussion at the top management or within the selected group that when required it include other multisectorial stakeholders.

Estimating Cost require at the first instance clear understanding of the desegregated activities schedule to be held in certain location that require a costing exercise. Also the use of procurement data from previous or similar projects or the actual market services and supplies assessment helps. The parametric approach sounds more practical and comprehensive because it requires a calculation based on multiplication of unit price X the quantities of certain item or service, however lamp sum calculations may be also applied for generic activities/ fees on the project.

I conquer with Joeberk, choosing to be the simplest one among others. Because in Parametric, you can easily calculate your expenses. Just multiplying the quantity of the items to their unit prices. Simple.

I think you can start with the Bottom-Up approach to be able to see the broader picture from the perspective of all the departments involved.This combined with the Parametric approach later can be used to come up with a project cost.

I believe one should be using a Bottom-up estimation because is definitely one of the most accurate methods of coming up with the definitive estimate of any given project. However, one needs a quality resource collection and a concrete work breakdown structure to be successful. To apply this technique, you must break down the project into its tiniest parts: the work package and activities. Remember, it does more than estimating the resources, time, and costs of a project’s activities, as it can also be used to evaluate change requests. Even though there are multiple cost and duration estimation techniques, bottom-up estimating is highly recommended as it can be used together with all the other estimate techniques. However, remember that even though it is highly accurate, some mistakes may heavily impact your estimates.

The most effective way to generate the project costs is the bottom -up approach, in most cases provides realistic costs though has some challenges of dishonest ,you have to be keen when you use this approach.

I will go with parametric as well. This is due to the simplicity of the process unlike top-down, and bottom-up which are exposed to dishonesty from professionals.

Estimating budgets is the most critical part of the project planning because without budgets the project will not pick up. moreover, bad budgets will plunge the project to uncertain circumstances.

yes parametric is a great way of estimating costs

it is true bottoms up approach is the greatest since it brings all stakeholders on board

moreover, bottoms up approach makes the lower stakeholders feel part of the whole program

This was the unit I was looking forward to the most and has been great insight for me.

To create an activity based budget, I will prefer to use the bottom-up method where the individual who will be spending the money creates the cost estimate.

In order to curb the disadvantage this method comes with, I will give deadline for a feed back as well as bench mark their response with a Top-down method for dishonest outrageous cost.

Thank you.

To create an activity based budget, I will prefer to use the bottom-up method where the individual who will be spending the money creates the cost estimate.

In order to curb the disadvantage this method comes with, I will give deadline for a feed back as well as bench mark their response with a Top-down method for dishonest outrageous cost.

The bench mark drawn will be used to estimate across.

Thank you.

use all the three approaches and tally the results because it helps to get the realistic cost.

This is a very vital phase in project management

for me, I recommend using the approach that fits the situation that iam working on

Applying all the three approaches in my opinion will lead to a more accurate budget as it will include the least obvious expenses.

It depends on the type of budget you want which will make you decide which of the three approaches to use and other times, you could use two and all of the three approaches at others times.

I believe that bottom up is the most effective especially in these changing times of unstable economies where by rates of different things keeps changing. this means that there is need of updated information to be used in budgeting which can be gotten from people who are hands on

I think we should use the bottom up approach whenever possible because it is generated by a combined team of experts and people directly involved in the project implementation. They are more likely to come up with costs really close to the actual cost

Parametric is the most reliable even for someone who's new with creating budget but knows the costs of materials or resources to run the project can easily adopt parametric.

Budgeting is one of the most difficult things I have face in project. Messing around with it will automatically force you and your team to adject the other 2 constraints of project management.

Pour moi estimé le coût de chaque activité est plus avantageux. Ça permettra de s'assurer que tout les coût sont pris en compte

I believe that you should use the parametric approach whenever possible because it is more reliable and easy to implement. However, adding more of the other approach will indubiously provide more consistancy.

A combination of all three would be best. This may, though, take more time.

@patricknyuma72, I agree, budgeting can be really difficult and force you to change scope and time.

The parametric approach seems to be the best one to use as much as it is possible, since it is based on actual, established prices.

I agree that the combination of top down, bottom up and parametric approach will work best. Salaries and services can vary and there has to be a reasonable estimate that is acceptable which can be a result of combining the top down and bottom up approach. then the Parametric approach will allow total units calculations. Deriving activities from a properly organized Work breakdown structure will enable a close to accurate estimate of needs which then speaks to the budget estimation.

In my opinion Parametric is the best option, only that I think it can happen in isolation it differently involve the other type. It is the best because it will have exact amount or a bit beyond.

Both the parametric and bottom up approaches are the best

I think the Top-Bottom budget is the most appropriate because it save time and involves use of experts.

i believe that a combination of the three is needed because different scenarios will warrant different approaches. The best approach is to asses which method will work best.

I believe the parametric approach is more realistic because it gives closely to the exact market prices and it gives 80% assurance about the purchase prices compared to other approaches

top down approach is better .

In schools we like to use a parametric approach when we can. We are required to produce yearly 5-year budget forecasts, and knowing and predicting costs is a central part of this budgeting.

Agreed- again, school budgets are driven by salary costs. Knowing the cost ahead of time makes school budgeting possible.

I believe that you should use the parametric approach whenever possible becuase it gives you a more accurate estimate of cost. Using the cost per unitnof material/supply, you could come up with a more realistic cosr estimates and budget for a certain activity.

Prefer using Top down approach beacuse it is relatively quick and simple

I believe that you should use the parametric approach whenever possible because gives the actual costs required for the project. It also eliminates the risk of dishonesty among employees tasked with handling the budget. However, there may be instances where top-down will also work best for your project. It may also happen that using these approaches together may work best for your project.

All approaches are applicable. I prefer the parametric for procurement purposes, Bottom- up because the person who spends has to vouch with receipts, Top down works when key decisions are being implemented.

I like using Top-Bottom approach because more stakeholders can be involved from the beginning. Getting more insight and feedback.

I believe that all three methods of estimating costs might need to be used depending on the activity.

Wow, very interesting to have a lot in details about project management.

and here in module two the schedules and budget kills all.

but top-down you are deciding for the implementers, i think the best is to mix two approaches.

what about bottom-up?

We use a lot of the top down approach, since budgets are primarily created by management or fund development staff when they apply for the grants.

I like your "it depends" take. Sometimes it is a new project, where we have less familiarity with costs than other times.

I believe that you should use all three estimate approach whenever possible because it provides room for comparison and come up with a realistic budget for the project, in that in Topdown it involves experts and some managers while Bottomup which is realistic if you have honest people as this are the implementors of a project , in some case the paremetric can also be used as some of the activities may have some set parameters which are known.

I believe that you should use all the three estimate approach whenever possible because it provides room for comparison and come up with a realistic budget.
In that in Topdown it involves experts and some managers while in Bottom up which is realistic if you have honest people as they are implementors of the project. in some cases the parametic can be used as some of the activities have some set parameters which are known and it will enable you to have accurate estimate costs for the budget

I see that it would be good to use the three approaches because they are interdependent

For me parametric is best because it is easy and the cost is already known. It is not complicated, easy to manage, and it is fixed.

the project manager, director, stakeholders and funders are the ones responsible for generating cost estimates for projects.

I believe that you depending on the type of project, the approach to be used is evaluated, but I believe that the most optimal is to use a combination of the three since multiple products, raw materials, etc must be taken into account in the projects. But if it is a project where I have to buy specific things, I would select the approach parametric
because it is a more efficient method in my opinion. For example, when you already have experience in projects, you already have quotes or values that are more real and updated with the market. But if you do not have experience in projects, they could be based on public projects that have the same raw material or carry out commercial surveillance.

@Joeblerk It is very complex to select a single approach because projects have so many purchasing requirements and so many indoles that sometimes the parametric approach works well, but I think that almost all projects the mixture of the three approaches works better.

And what about projects where you don't have the value of these costs? Sometimes, for example, a certain person who collaborates in the project is the one who handles certain values and sometimes it is necessary to ask the other members of the work group or sometimes the opinion of experts or researchers in the area is needed.

It's true

I agree with you, because not in the entire project you can have the exact unit value and more for example if the project is formulated in one year and carried out in another. On the other hand, many things can happen that can increase the value of some material, so here a single approach would not be beneficial.

Yes, this approach is so clear and simple. But figure a situation out where the services or products that you will need to pay for can not be divided. So, this approach is limited.

Parametric approach is the best and not very complex in nature so I think it is better to follow

Bottom up estimation is the best mode of operating

Thanks for your wonderful ideas

It may depend on the project taken and it may vary

It will be better to apply allthe three approaches and get the best results

Bottom up approach is definitely the best

Thanks a lots for expressing your views on cost estimations

I believe the top-down estimates are the best to use because this way you can have projected costs and the go ahead to create a budgeted spend that will guide your negotiation with vendors. As a non-profit project manager, I always look for at least 20% cost savings on each line item. This way, I have just enough to spend and end up with a surplus at the end.

The parametric approach because this approach allows us to spend according to our budget. once you have the unit price, you can buy a quantity of material from the amount fixed in the budget.

I believe that you should use the parametric approach whenever possible because you get to know the cost of every unit of items and it helps to know where to make adjustments .

Though using all three approaches in estimating the cost may take more time than using one of the three, I think one will be better informed on the cost estimates and thus minimising the chances of either underpricing or overpricing.

The approaches sometimes may depend the the work culture of an organization. However, for me i feel that the bottom up approach is best because it will be more accurate, true and is the best expected expenses required as it is submitted by the project implementers with their experience and knowing the ground reality.

How do we respond to the changing situation and market prices?

The parametric approach is only when unit cost can be calculated. However, in complex projects this might not be the best option.

Basing on the fact that estimating activity costs comes after listing activities and estimating the resources needed and knowing the actual cost per unit resource makes parametric a better option and the fact that bottom up gives a room for dishonesty that would led to overbudgeting and top down is most likely to give costs that does not match with the real cost which would present a risk of less budgeting.

I believe that you should use the top to bottom approach whenever possible because of its simplicity.

All have their merits, however the top down approach in my opinion would be the best approach because using experts has the advantage of not only being experts in theory but also in practice especially in our part of the world where you cannot be an expert without any field knowledge (that is a scholar).

I believe a combination of all three approaches works best whenever possible when estimating costs, especially in this climate of escalating costs on a daily basis. I like to use whatever experts I have available who can help keep these estimates realistic. In my organization, I rely on the wealth of volunteers I have who are experts in their respective organizations or careers, especially those who are consultants.

For me Bottom-up budgeting approach can be the realistic one because, when you involve people who will be spending money to come up with their activity budget and you as a PM consolidate those budgets to come up with one realistic budget. For sure this type of budgeting can be of much help and easy to go about.

In my opinion the it will be good to use all of the three approaches because doing so can eliminate the disadvantages of each approach. One can use the top down approach and generate cost estimates through consulting expert and doing some research. Then this can be further ascertained using the bottom up approach which is more realistic cost based. And the third approach can be used if there is any unit cost calculation involved.

Use the three methods ie;top down approach,bottom up approach and parametric approach.the three approaches complement each other.The top down approach involves experts,some research and managers,the bottom up approach involves individuals and realistic when they are honest and parametric is applicable when you have cost per unit.

I believe that you should use the parametric approach whenever possible because the approach help when you have a cost-per-unit that can be reliably calculated. In which multiplying that cost-per-unit times the number materials or number of times the activities occurrence or number Resource we need to use in a project.

In as much as parametric seems to be more efficient, I believe we should also consider leveraging and incorporating what the other two may offer to come up with a hybrid solution

Top-down

Top up on my sid dounds more accurate because you will have to get the researcgers to give out the estimates to work on. Its creates honesty

The parametric approach is more realistic and may be cost effective in the long run

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In my opinion parametric is the best approach. Having unit per cost, you can multiply by number of units and get exact and accurate cost figure without over budgeting or underbudgeting the activities.

I would use a mix of all the three.
Start with top-down to get overall budget idea
Use bottom-up to know costs of field activities from employees
Use parametric to know costs of items.

The combination of bottom up and top down is a good one. It allows those that will implement the project to participate in budget development and also helps to monitor every expenses included in the budget

I think the parametric is the best because it explain itself to any one who pick up a the document without help from anyone.