Certified Professional Contract Manager (CPCM) Practice Exam 2025 - Free CPCM Practice Questions and Study Guide

Analogous estimating is a cost estimating technique that relies on historical data from similar projects or products to create estimates for new projects. This method is particularly useful in situations where there is limited data available for the current project. It leverages the experience and outcomes of past projects to inform the pricing and resource estimates of the current one, making it a practical choice for rapid estimation.

In contrast, bottom-up estimating involves calculating the costs of individual components or tasks and aggregating them to arrive at a total project cost. This technique is more detailed and time-consuming, as it requires a full breakdown of all elements.

Parametric estimating uses statistical relationships between historical data and other variables to calculate estimates, often requiring a broader analysis of patterns rather than direct comparisons with past projects.

Top-down estimating takes a high-level approach, applying broad estimates to the overall project based on overall project goals. This method may lack the specificity offered by analogous estimating, which provides a more grounded basis for estimating since it directly relates to completed projects with similar characteristics.