Define: Comparative Cost Estimating

Comparative cost estimating is a method used to estimate the cost of a project by comparing it to similar projects that have been completed in the past. It involves analysing historical data and using it as a basis for estimating the cost of a new project.

Yes, comparative cost estimating is a legally recognised method in the field of project management and construction. It is widely used by professionals to estimate the cost of projects and is considered a reliable and valid approach.

There are no specific legal requirements for using comparative cost estimating. However, it is important to ensure that the historical data used for comparison is accurate and reliable. It is also advisable to document the sources of the data and any assumptions made during the estimation process.

Yes, comparative cost estimating can be used as evidence in legal disputes related to project cost estimation. It can help demonstrate the reasonableness of a cost estimate and support claims for damages or compensation.

Yes, there are limitations to using comparative cost estimating. The accuracy of the estimate depends on the similarity of the projects being compared, the quality of the historical data, and the assumptions made during the estimation process. It may not be suitable for unique or complex projects that do not have comparable historical data.

Yes, comparative cost estimating can be used for budgeting purposes. It provides a basis for estimating the cost of a project and helps in setting a realistic budget. However, it is important to consider other factors, such as inflation, market conditions, and specific project requirements, when finalising the budget.

Yes, comparative cost estimating can be used for cost control during a project. By comparing the actual costs incurred with the estimated costs, project managers can identify any deviations and take corrective actions to control costs.

There are no specific legal standards or guidelines for conducting comparative cost estimating. However, industry best practices and guidelines provided by professional organisations such as the Project Management Institute (PMI) can be followed to ensure a systematic and reliable approach.

Yes, comparative cost estimating can be used for different types of projects, including construction, engineering, software development, and manufacturing. However, the availability and quality of historical data may vary depending on the industry and project type.