Description
Project cost estimation can be done through a top down, bottom up or any other approach. Each of these methods has its strengths and weaknesses and the choice of the method to use depends on the nature of the project, most probably the in-depth knowledge or experience in implementing the project. For this project, a top-down approach was used to estimate the budget. Because of the lack of in-depth knowledge in implementation of such project, two techniques were used – previous history and expert opinion. Previous projects were reviewed for an estimation of their budget and adjustment made in tandem with the size of this project. The decision to use this method was because it was easier to evaluate the success or failure in budgeting from these projects and make necessary arrangements. In addition, expert opinion was sought from project manager who has implemented such projects before. The expert is well versed with the project budgeting hence the decision to seek opinion. The estimation from both techniques was therefore used as the bases for estimating the budget of this project.