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@Erunuma ,thanks for highlighting the advantages of the parametric budgeting approach.
I agree with this approach. We may require to use all three as per the need of the projects.
@Utkalika15 ,thanks for expressing your point of view on cost estimation.
the parametric method is more relable because i can obtain the unit cost of most of the resourses needed for the project by obtaining market quotes from suppliers and build the budget with other methods such as the top down and buttom up methods
@FolaR ,thanks for highlighting the advantages of the parametric budgeting approach.
For me parametric approach is the best approach, first because it is not so complex all that is needed is to ensure that you have a true actual cost per unit and then do the multiplication, and this calculation are quite simple, so generally it sure simplifies a seemingly complex activity.
I think the parametric method of budgeting is best suited because i think it is the most scientific method as against the other 2 methods that are quite subjective
The course is powerfully packaged. Thank you to the facilitator(s).
The pragmatic approach would be bottom-up to find actual cost spending in the field. Even though there are some doubts about field staff in terms of overestimating their expectation, it is still more closer approach than top-down for the purpose of estimating required expenses for the project. The field staff know local expenses, and can figure out more accurate cost for the planned activities. In addition, the bottom-up approach helps to enhance ownership of the field staff thereby helps to implement the project effectively and efficiently. The bottom-up approach can also increase the participation of field staff in project designing, and can mobilize local stakeholders in organized manner. In this context, the bottom-up approach also helps to top leaders to understand ground reality and estimate budget more accurately and sufficient for the project activities.
The most effective way to generate cost estimate is using a certain budget format.
Parametric approach is very simple, more accurate, and time saving. Top down approach is also practical if it's thoroughly thought of and specific
I strongly agreed with my colleagues that chose parametric approach. This approach is very easy and trusted because the funders have to know and exactly understand the each cost of all activities.
I think that first thing is to research the costs online just to have an idea, or ask some work colleagues and acquaintance about it. Then, I could switch to the bottom-up approach for the items that are difficult to obtain, especially items that represent high costs, noting that I am using the parametric approach by default for every item that should be bough in quantity.
As it is known that the Parametric Approach sometimes cannot be applied in all budget situations, so it is best to choose the appropriate Approach in the right place.
I much admit that you guys are all on point, but this my view and understanding on the topic. These three approaches are all good based on the setting or locality. From my experience, It is advisable to apply the last two approaches: the Bottom-Top and parametric. While do I say so? It is very important to also involve some stakeholders who will perform certain text into the costs estimation. For example, if you are constructing a house, invite the engineer to help you in estimating the cost item after item. After the both you are done, rewrite the list of items a visit a renounce construction materials store. If you are done with yours, your team can use the two set of data to come up with a more realistic figure for costing.
I use a combination of all 3. I work for a large local nonprofit and while parametric data is helpful when available, we often engage in new projects and the expertise of those who have been in the field coupled with the perspectives of those who are on the ground produce the best budgets for us.
@Jlord1010 ,the idea of combining the three budgeting approaches is brilliant.
@sylvestrees1992 ,thanks for expressing your brilliant and thoughtful point of view on cost estimation.
@hassanonsa8 ,thanks for expressing your point of view on cost estimation.
@makram ,thanks for expressing your point of view on cost estimation.
@duolk2020 ,thanks for highlighting the benefits of using the parametric approach in cost estimation.
@Afaf-zeinoun62 ,thanks for expressing your point of view on cost estimation.
@Tesfish ,thanks for your answer.
@anod114 ,thanks for expressing your point of view on cost estimation.
@Sydney93 ,you're very welcome.
@Sydney93 ,thanks for highlighting the advantages of the parametric budgeting approach.
I believe you should use parametric approach whenever possible because, cost can be attached to each item of work
I think all approaches have their upsides, the top- bottom approach saves you time because it is quicker to estimate costs whilst the bottom up approach gives you the actual costs from the people on the ground even though trust issues from some employees might come into play. The parametric approach gives you the actaul cost-per-unit and this will ensure accuracy in estimating costs
@Shiny001 ,thanks for expressing your point of view on cost estimation.
@vmaramba45 ,thanks for expressing your point of view on cost estimation.
I believe bottom up is the best because if they will be under budget somewhere then the ones who were coming up with the cost will understand. You better when you are taking some measures to cut the budget inside to fulfill certain things.
I agree, this is the best way to estimate costs depending on the nature of the project
Good title , enables to learn more.
@PreciousUniqMtambo ,thanks for expressing your point of view on cost estimation.
@Afaf-zeinoun62 ,you're so right about this.
@Tesfish ,thanks for your answer.
As per my understanding, we should use the following 2 approaches together:
Top down and Parametric.
By using these 2 approaches together we will get some basic idea of our cost/expenditure as well as the realistic cost also.
Hello @vikasbhardwj ,thanks for your answer.
@vikasbhardwj ,thanks for sharing your brilliant answer with us.
For me, The bottom-up approach seems ideal, as it offers much more realistic costs. However, the person in charge of estimating the cost of the activities must collect the data from several people (do a triangulation) to ensure that the data collected at the base is correct.
I think the best approach for a project estimation cost is parametric estimates as it will assist in identifying the costa per activity.
@Malistoman ,thanks for expressing your point of view on cost estimation.
@Isnho10 ,thanks for expressing your point of view on cost estimation.
Yes, n I choose top-down cause its better according my experiences.
@Solon_freedom ,thanks for expressing your point of view on cost estimation.
I can use Top down approaches , because it is very and simple then the other approaches.
I agree that the top down should be use, but where feasible the bottom-up should be used to validate. Also where the parametric approach is feasible e.g. budget for items/equipment, this would be the best approach
@Tibeme ,thanks for expressing your point of view on cost estimation.
@rial ,thanks for expressing your point of view on cost estimation.
When it comes to expenses like equipment, supplies, and salaries, the obvious choice is parametric. As the budget is clearly define. But when it’s a bit vague, like human resources, communication, and risk management, I would choose top-down approach. It might not show the real cost but with extensive research combined with knowledge and expertise from different stakeholders, can reach a good budget outcome. Bottom-up would be my last resort.
A mix of the three approaches is the best way to come up with the best budget for your project depending on who is responsible for your budget. Parametric approach is very simple and realistic when you working on a known budget thus the cost per unit and multiplication can indeed produce a realistic budget estimate.
I prefer Bottom Up Approach because with this method, the cost will be more reasonable and realistic because the junior staff who are actually on the field are in a good position to estimate the costs clearly.
@TatuliAmos ,thanks for expressing your point of view on cost estimation.
@Samkelo ,using all the 3 budgeting approaches in the cost estimation process seems like a brilliant idea.
@Quest4knowledge ,thanks for expressing your point of view on cost estimation.
Thanks, your response was helpful
@usman_Hafsat ,thanks for actively participating in our course discussion forum.
I agree that when possible a Parametric approach is the best. However, I had the experience of needing to really trust local experts in approximating their own pay rate and the cost of equipment (bottom up). I believe that a combination of doing your homework to make estimates (top down) combined with bottom up and Parametric is usually the best approach,
@KristynZ ,thanks for expressing your brilliant point of view on cost estimation.
There are some approaches that needs to be use for project implementation.
1- Top down Approach, where the project manager will plan the activities of the project and how the budget be allocated for each and every activity.
2- Bottom Approach is where the cost will be allocated per activities that will cost a lot of money, if the manager doesn't take good supervision the budget will be over spent, that will cause budget constrain.
3- Parameter Approach is how the three constraints Design, Scope and Budget will be balance together..
It depends on types of project you are dealing. If you are doing similar type of project, parametric is more suitable In other hand, if you have Top down then you can relate your spending with strategic intent as well.
In an ideal situation, the Bottom-up approach given it is based on experience and research to provide real costs. And it could be backed by existing proforma invoices.
I believe the top down is a good way of generating cost estimates. Despite the fact that it may give cost that is not real, it will allow for flexibility in case there is a change in price of resources.
In my view, one can use a combination of the three approaches to estimate costs. The benefit out of combining Top-down, Bottom-up and parametric approach is that each expense can be estimated using the appropriate way. Doing so , one can mitigate disadvantages of the different approaches and come up with more realistic costs
@SENON ,combining the three budgeting approaches seems like a brilliant idea.Thanks for expressing your point of view on cost estimation.
@AgathaIBU ,thanks for expressing your point of view on cost estimation.
@rkhanal ,thanks for expressing your point of view on cost estimation.
@chuoljohn ,thanks for expressing your point of view on cost estimation.
I believe that you should use the Top down approach whenever possible because with help of managers, experts they will come up with close to reality cost budgets and it will save time. Moreover they will be aware of the project funding which will guide them when they estimate
@ClemenceK ,thanks for highlighting the benefits of using the top down budgeting approach.
In my side, parametric method is the best one because it can give you the real cost but sometimes it can need you to go direct to the market place to determine the market price for your equipment so it can behave like time consume approach but it is more realistic, Also bottom Up is the good method by making assumption of having honest employees in you organization otherwise you will go to suffer the consequence of unrealistic budget
@Daniel_habari ,thanks for expressing your point of view on cost estimation.
You are welcome.
The bottom-up approach to budgeting is the best. Though it is time consuming to get the people doing the work to estimate the cost, it is more reliable because it will give a relatively updated information of the cost. A good cost compensates for the time in getting the budget done. Of what value is a budget if the cost estimates are wrong? To ensure that the costs submitted by the people are correct, it is advisable to get costs from 2-3 people doing the same job, this will be a good check tool.
@kessytonukari ,thanks for expressing your point of view on cost estimation.
Among the three approches to estimating costs, I believe that parametric is profoundly essential in terms of efficiency and transparency.
@Dommenic ,thanks for expressing your point of view with us.
I believe that you should use the parametric approach whenever possible becauseall costs need to arise will have a specific unit price, need to know that specific price then the cost calculation will be more efficient.
@Theu ,thanks for expressing your point of view on cost estimation.
I believe that you should use all 3 approaches during budgeting whenever possible because they complement each other and the weakness of one approach is corrected by the other. I believe that no approach would be comfortably used in isolation.
Good day Dommenic, it is true the parametric approach gives an opportunity for cost per unit to be established making it easy to use but this cannot apply for every expense hence limiting its use in generating cost estimates.
It is true that the bottom up approach produces more realist costs but it can be time consuming and difficult to coordinate and moreso employees can tend to be dishonest about their expenses.
Depending on your project I think you can use Top-down or bottom-up to check assumptions. You could also use parametric which is easy to calculate but this will not apply to every expense so it must be used only when it is practical to use.
For me the parametric approach is better. Firstly because it is simple and quick. Also it yields more quantitative results than the other approaches.
@Blessing89 ,combining the three budgeting approaches seems like a brilliant idea. Thanks for expressing your point of view on cost estimation.
@Blessing89 ,thanks for actively participating in this course discussion forum.
@shadrecksamungu ,thanks for highlighting the advantages of using the parametric budgeting approach in cost estimation.
@Sekai ,thanks for expressing your point of view on cost estimation.
I believe that you should use the Parametric approach whenever possible because it depicts efficiency and transparency and very clear in all stages
@i_hayat_ahmadzai ,thanks for expressing your point of view o cost estimation.
From my point of view "Parametric" approach is the best, with the fact that a clear unit of measurement is attached to what is to be measured. In a situation where units are developed, the estimate will be easier to make. Furthermore, in the case of supplying and installing a particular item, say a roofing sheet. The easiest way to compute is to;
When generating the cost estimates it's always good to start by listing the project activities. The project charter is a good place to start. 3 different approaches can be used to allocate costs:
@michaelmaundu ,thanks for expressing your point of view on cost estimation.
@binbaaz72 ,thank you for expressing your point of view about the parametric budgeting approach.
I believe parametric is most effective because it provides realistic cost from market data to calculate an estimate of the project parameters. It is also a simple approach compared to Top-down and Bottom-up
@EWURAMA ,thanks for expressing your point of view on cost estimation.
I believe that you should use the Top-down approach whenever possible because will help the team members those who are implementing the project to get involve in giving the amount estimated, because they are directly dealing with the tasks, therefor they know the actual amount spending.
The parametric method for me is ideal for estimating activity costs for a project because of its simplicity. what is key is to get an accurate reliable cost per unit and the calculation should be easy once the required number of units is known. The project manager must endeavor to get realistic unit costs in order to ultimately get a realistic budget. This can be achieved by using the top down approach to some extent and then following this up with the bottom up approach to check that the cost per unit is reliable.
For me the Parametric approach has worked as we have been able to get a close to cost budget before hand and then forecast for any unexpected price increases that may come from suppliers.