Analogous estimating
Should cost modelling, Development Guidance, Version 1.0, published by Government Commercial Function in May 2021 states: ‘This technique takes data and learnings from previous services, projects or programmes and uses them to represent what future costs might be. It takes information about elements of services, projects or programmes that are similar in nature and allows them to inform what proposed costs might be in future models. These estimates can then be recalibrated for known differences between services, projects or programmes and used within a model. These techniques are often used in early phases of model development and are less accurate than other methods.’
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