Cost estimating requirements

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Details

Establishing clear requirements for the development and assurance of capital cost estimates will improve the quality of decision making and delivery discipline.

This cost estimating requirements and assurance document is a guide for cost estimator practitioners and reviewers. It aims to provide guidance on how teams should evidence and how the IPA will assure the cost estimate. It includes a step-by-step
process requirements guide, which sets out in detail each step to cost estimating and assurance.

The development of this document was informed by cost estimating guides, industry reports, and academic papers. In addition, lessons learned from cost estimating practice and independent assurance of projects were considered.

This guidance document is part of a collection of documents, including: cost estimating guidance; cost estimating requirement, and; training – to support professional development and promote the adoption of consistent methods.

There are two aspects to this document:

1. Cost estimate requirements by stage gate. The cost estimate serves distinct purposes in informing each stage gate decision point and project teams must be able to evidence how they have applied the cost estimating requirements set out in this document at each stage gate.
2. Cost estimating process requirements. This section provides detailed requirements to support practitioners in producing robust cost estimates. The requirements focus on common problem areas and are structured around the eight standard steps to producing a cost estimate described in the Cost Estimating Guidance

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Product Information

Delivery vehicle Programme, Project

Practice Planning, Planning and Control

Product type Workbooks and guides

Updates

17 March 2021

First published