Assurance of the quality and accuracy of project estimates is an essential issue for both Owners and contractors. In the previous post ‘What a Project Estimate Should Comprise of: An Extended Definition of Estimate Class’ we developed what the components of an estimate should be. In our new White Paper 2019-09 ‘How to Properly Review Project Estimates’ we describe a generic approach for reviewing the soundness of project estimates. We also expose some issues and shortfalls we have often experienced during estimate reviews.
The framework described in the White Paper starts from the observation that the accuracy of the underlying assumptions to the estimate are essentiel for its quality – compared to the detail or precision of the estimate itself. It is not because an estimate has taken much pain to develop and looks very detailed that it is accurate. It is essential to check the consistency of the estimate detail with the detail of project maturity, not only in terms of technical maturity but also in terms of detailed project execution planning.
The framework includes:
- Assessing the estimate objective and the estimate class
- Checking the underlying maturity of the project
- Checking the scope coverage
- Checking the documentation of the estimate
- Checking the relative quality of the Opex estimate (Owners or operating contractors)
Read our new White Paper 2019-09 ‘How to Properly Review Project Estimates’ to discover a structured framework for challenging project estimates.
If you can’t access the link to the white paper, copy and paste the following link in your browser: https://www.projectvaluedelivery.com/_library/2019-09_estimates_review_approach_v0.pdf
