In the Parametric Estimating Handbook, the International Cost Estimating and Analysis Association (ICEAA) describe the term ‘Parametric estimating’ as
“A technique that develops cost estimates based upon the examination and validation of the relationships which exist between a project’s technical, programmatic, and cost characteristics as well as the resources consumed during its development, manufacture, maintenance and/or modification.” (Source: International Cost Estimating and Analysis Association (ICEAA) – ‘Parametric Estimating Handbook’: www.iceaaonline.org)
In very simple terms, you can set up “models” or “template projects” that take historical information as the input. Based on assumptions made, you can duplicate that information for each new estimate.
Our software can help you extrapolate the information to compute the overall cost estimates. By simply adjusting variables/parameters, you can instantly see the impact on the price.
If you produce estimates at the early or concept stages of the project life-cycle, then you may wish to consider producing a parametric model. If you would like to discuss whether to do this, and how it might be done, then feel free to contact us simply by filling out the form.