Historical Relationship

While estimating or predicting the budget of the project one can refer the historical data and the other mathematical model which is covered through analogous and parametric estimation techniques. By calculating using these techniques the accuracy and the cost will vary and reliable on the historical information used to develop accuracy, parameters used for the quantification, scalability, complexity of the projects etc..

For example the cost for a particular resource with particular skills set is so much of dollar. Or per square feet with specific material will cost $X, etc… These parameters can be used to develop or predict the project budget.

Historical Relationship technique is used under the process Determine Budget.