Parametric Estimating

Parametric estimating is a method used to predict the cost, time, or resources needed for a project by using statistical relationships between historical data and project parameters. For example, if past projects show that construction costs are typically $200 per square foot, a new project’s estimate can be calculated by multiplying its area by this rate. This approach leverages existing data and mathematical models to create quick, consistent estimates, especially useful in large or similar projects, by focusing on key measurable factors rather than detailed task-by-task analysis.