Cost

What is Bottom-Up Estimating?

Bottom-up estimating prices every work package individually — ideally with the people who'll do the work — then rolls the numbers up through the WBS to a project total. It's the most accurate technique and the most expensive to produce, because it requires the full decomposition to exist first.

The hidden bonus: estimates built by the team are estimates the team owns. A number handed down from above is a target; a number built from below is a commitment.

Worked example

For a warehouse automation project, each subsystem lead estimates their own packages: conveyor install 340 hours, WMS integration 520, commissioning 260. Rolled up with contingency, the total is $1.9M — and when the sponsor asks "why not $1.5M?", every line has an owner who can defend it.

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