The document discusses various methods for estimating project timelines and costs. It describes top-down and bottom-up estimating approaches, with top-down using experience to estimate overall duration and costs while bottom-up builds up estimates from individual work packages. Bottom-up is preferred for more complex or uncertain projects while top-down works for simpler projects. The document also outlines factors influencing estimates, types of costs, and guidelines for refining estimates as a project progresses.

2. Where We Are Now

5. Factors Influencing the Quality of Estimates Quality of Estimates Project Duration People Project Structure and Organization Padding Estimates Organization Culture Other (Nonproject) Factors Planning Horizon

8. Top-Down versus Bottom-Up Estimating TABLE 5.1 Conditions for Preferring Top-Down or Bottom-up Time and Cost Estimates Condition Macro Estimates Micro Estimates Strategic decision making X Cost and time important X High uncertainty X Internal, small project X Fixed-price contract X Customer wants details X Unstable scope X

15. Key Terms Apportionment methods Bottom-up estimates Contingency funds Delphi method Direct costs Function points Learning curves Overhead costs Padding estimates Phase estimating Range estimating Ratio methods Template method Time and cost databases