What are the drawbacks of analogous cost estimating for a casino business?

[Julio88]

Analogous estimating is a cost estimating method that is based on historical data from similar projects or activities. It is often used when there is limited information available about the scope or requirements of a project. One potential drawback of analogous estimating is that it relies heavily on the accuracy and relevance of the historical data used. If the historical data is not similar enough to the current project or if it is outdated, the estimates may not be accurate or reliable.

 

[Crazy_winner]

Because historical data may not take inflation, shifting market conditions, or unforeseen building obstacles into account, it could result in unduly optimistic cost forecasts. Furthermore, equivalent estimations might not give a precise cost breakdown.