Bottom-up Estimating
This technique involves estimating the cost of individual work
packages or individual schedule activities with the lowest level of detail. This
detailed cost is then summarized or “rolled up” to higher levels for reporting
and tracking purposes. The cost and accuracy of bottom-up cost estimating is
typically motivated by the size and complexity of the individual schedule
activity or work package. Generally, activities with smaller associated effort
increase the accuracy of the schedule activity cost estimates.