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.