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Estimating & Bidding

Parametric Estimate

In Plain English

A cost estimate calculated using a cost-per-unit formula based on historical data, like dollars per square foot.

Definition

A parametric estimate uses statistical relationships between project parameters and historical cost data to produce cost projections, typically expressed as a cost per unit such as dollars per square foot or dollars per bed. It provides better accuracy than conceptual estimates but less than detailed quantity takeoffs. Parametric estimating is common in early project phases and for benchmarking.

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