Reviewing a Project Cost Estimate

Scope and technical checks

• Does the estimate match the latest design and schedule?
• Are interfaces, temporary work, testing and closeout included?
• Are exclusions explicit and reasonable?

Data and method checks

• Are rates, quantities and productivity supported?
• Were historical costs normalized?
• Are formulas, units and currencies consistent?
• Does estimate detail match project maturity?

Risk and reconciliation checks

• Are base cost, escalation and contingency separated?
• Are major risks reflected once, not twice?
• Can changes from the previous estimate be explained?
• Do summary totals reconcile to supporting detail?

Independent review

Independence can range from peer checking to a separate estimate. The level should match decision importance, novelty, uncertainty and potential consequences.