What is the focus of ratio or factored estimating methods?

The focus of ratio or factored estimating methods is primarily on estimating the total cost from individual item costs. This approach involves utilizing established ratios or factors derived from historical data or previous projects to predict the overall cost of a project based on the costs of its specific components or activities. By applying these ratios to known or estimated individual item costs, estimators can derive a more comprehensive and realistic budget for the entire project, enabling effective financial planning and resource allocation.

This method is particularly useful in construction and project management, where understanding the relationship between various costs and the total expense is essential for making informed decisions regarding project feasibility and execution. By breaking down the project costs in this manner, estimators can ensure that all necessary elements are accounted for in the overall cost estimate.