Reference no: EM133525351

Part 1

You work as an estimator for a home improvement contractor. Part of the bid that you are preparing includes a bid to build a fancy deck 10 ft. x 30 ft. for a homeowner. The deck will be over a steeply sloping back yard which requires extra bracing for the posts and a long stairway. Your carpentry estimator used a Parametric estimate of $24.00 per sf. ft. He adjusted it upward by 10% for the difficulty. Are you comfortable with his estimate? How would you check it?

Part 2

Estimating

1. Compare 3 estimating techniques: Analogous, Bottom-up and Parametric. Explain the circumstances which determine the method you should use each type as your primary method.

2. According to PMI (2017, p. 245) There are two common ways to estimate cost and duration using the 3-point method. The first is the triangular distribution where the estimate is based on the average of the optimistic (O), most likely (M), and pessimistic (P) estimates. Mathematically, Your estimate = (O+M+P)/3. The second way is based on the Beta distribution that puts more weight on the most likely. Mathematically, your beta estimate = (O+4M+P)/6. Using the following, calculate the two estimates of duration: O=4; M=6; P=11. Explain the difference in the answers. How would you decide which method to use?