Cross estimating method
The cross estimating method is a technique that involves using data from similar completed projects to estimate the cost of a new project. It is often used when there is limited information available on the new project or when there are significant uncertainties in the project scope, schedule, or other variables.
The accuracy of the cross estimating method depends on the quality and relevance of the data used in the analysis. It is important to ensure that the completed projects used for comparison are truly comparable to the new project and that any adjustments made to the cost data are based on sound reasoning and reliable data sources.
The first step is to identify completed projects that are similar in scope, size, complexity, and other relevant characteristics to the new project. This involves conducting research on completed projects in the same industry, geographic location, and with similar project requirements.
Once similar completed projects have been identified, the next step is to collect cost data on those projects. This can include data on labour costs, material costs, equipment costs, overhead costs, and other relevant costs associated with completing the projects.
The cost data collected from the completed projects may need to be adjusted to account for differences in inflation, location, market conditions, and other factors that may impact the cost of the new project. For example, if the projects were completed several years ago, adjustments may need to be made for inflation.
Once the cost data has been collected and adjusted, the next step is to calculate the cost for the new project. This involves using the cost data from the completed projects as a benchmark and making adjustments based on the unique characteristics of the new project.
Finally, the cost estimate should be verified to ensure that it is reasonable and accurate. This can be done by comparing the estimate to other cost estimates for similar projects, conducting a sensitivity analysis to assess the impact of changes in key variables, and seeking input from experts and other stakeholders.
[edit] Related articles on Designing Buildings
Featured articles and news
We're expanding our collaborative mission by launching DB Intelligence, an exclusive market research advisory panel. Built environment professionals can now get paid to share their expertise on industry trends, products and services.
Panel members receive direct financial incentives for participating in research projects like short surveys, 1-2-1 interviews and focus groups. Register today to shape the future of the construction sector.
Building Control Independent Panel final report
A precis of a key report led by Dame Hackitt with full recommendations and link to the government response.
Guide to ISO 19650 for Architecture Firms (2026)
A user gives their low down.
A UK training and membership provider for mould remediation professionals.
Building Safety recap April, 2026
A short and longer run-through of the month, with links to further information and sources.
CIAT May 2026 briefing.
Independent NSI and BAFE study exploring how organisations are changing the way they buy fire safety services.
From medieval scribes to modern word art.
ECA welcomes crackdown on late payment and push for clean energy, whilst CIOB seek fixed cladding removal timeframes.
Cyber Security in the Built Environment
Protecting projects, data, and digital assets: A CIOB Academy TIS.
Managing competence in the built environment
ITFG publishes new industry guide on how to meet the ICC principles.
The UK's campaign to reduce noise pollution: Mythbusting, articles and topic guides.
Comments
[edit] To make a comment about this article, or to suggest changes, click 'Add a comment' above. Separate your comments from any existing comments by inserting a horizontal line.