Part 71: Historical Information Review
(Project Cost Management: Determine Budget)

  • We develop mathematical models from the historical information to predict total project costs
  • The models can be simple or complicated
  • These models are reliable when
    • The historical information is accurate
    • We can use quantifiable parameters.  For example, cost per square foot for installing drywall is quantifiable.
    • The models are scalable.  For example, cost of installing 100 square feet of drywall can scale to cost of installing 10,000 square feet of drywall.  Cost of building a small software app vs a large software app may not scale as well.