Parametric estimating is based on the relationship between the current project and what?

Parametric estimating is a method that relies on historical data to predict future project costs or durations. This technique involves identifying relationships between variables and using these relationships to create estimates based on past performance. By analyzing historical data from previous projects, such as costs per square foot for construction or average time needed for task completion, project managers can establish parameters that will help them accurately forecast outcomes for similar future projects. This method is particularly useful because it allows for quick and data-driven estimations, improving efficiency and effectiveness in project planning.

While current industry standards, expert opinions, and budget allocations may contribute to project planning and estimating, they do not specifically define the parametric approach, which fundamentally relies on leveraging historical performance data to inform present estimates.