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Independent Estimate Reviews: How to Validate Costs and Improve Estimate Accuracy

  • Writer: Roger Farish
    Roger Farish
  • Aug 24
  • 3 min read

Updated: Aug 25

In capital projects, even strong teams can miss important details in early estimates. Assumptions get overlooked, escalation rates are misapplied, contingencies are stretched too thin or padded without reason, and scope boundaries can be fuzzy. These gaps do not just affect the numbers, they influence investment decisions, funding approvals, and negotiations that shape the entire project lifecycle.


That is why many owners, EPCs, and OEMs rely on an independent estimate review. Done right, it builds confidence in project costs and provides transparency that supports better decisions.

Why Estimates Need Reviewing


A capital project estimate is more than math. It is a reflection of scope, methodology, execution strategy, risk posture, and market conditions. Without review, errors or biases can easily slip through.


According to AACE International Recommended Practice (RP) 31R-03, structured estimate reviews help assess estimate quality, suitability, and alignment with project objectives. Clear documentation, such as a strong Basis of Estimate (BoE), is critical to this process.


Independent reviews bring discipline to estimating, ensuring that the estimate reflects both project definition and industry best practices.

What an Independent Estimate Review Includes


An independent estimate review goes far beyond checking calculations. A comprehensive review will typically:


  • Validate the methodology and inputs used to develop the estimate.

  • Confirm the estimate class and its associated accuracy range.

  • Assess scope coverage, exclusions, and alignment with project definition.

  • Evaluate escalation, contingency, indirects, and contractor markups for defensibility.

  • Benchmark against industry data and metrics.

Flowchart of independent estimate review process showing five steps: Scope Alignment, Qualitative Review (AACE 31R-03), Benchmark & Validate (AACE 110R-20), Risk & Contingency, and Document & Report. Highlights ROMAN Consulting Group’s structured approach to defensible estimates.
Independent estimate reviews for capital projects, guided by AACE Recommended Practices (31R-03 and 110R-20), provide a structured process to improve estimating accuracy, cost validation, and defensible project decisions.

As noted in AACE RP 110R-20, reviews should consider both predictability (can the project deliver within the approved budget?) and competitiveness (are costs in line with market norms?). In some cases, developing a Should-Cost Estimate provides a valuable baseline for evaluating contractor pricing.


When performed early in the FEL stages, this process helps owners and contractors identify risks before they become embedded in the budget.

Practical Benefits for Owners and EPCs


The value of an independent estimate review is both technical and strategic:


  • Objectivity: Removes bias, whether from internal optimism or external commercial interests.

  • Risk reduction: Ensures contingencies and escalation rates are defensible and aligned with project maturity.

  • Negotiation support: Provides owners with evidence to validate or challenge contractor proposals.

  • Stakeholder alignment: Builds confidence across teams, management, and investors.


In short, an independent review strengthens the credibility of the estimate, and credibility drives better business outcomes.


As discussed in Top 5 Estimating Mistakes in Capital Projects, early reviews often expose issues before they impact budgets and approvals.

ROMAN Consulting Group’s Approach


At ROMAN Consulting Group, we help clients bring structure and discipline to the front end of capital projects through estimating, scope development, and risk management. Our independent estimate reviews are designed to:


  • Cover estimates from Class 5 through Class 3, aligned with FEL-1 to FEL-3 stages.

  • Apply AACE frameworks (31R-03, 110R-20) in a way that is practical for owners, EPCs, and OEMs.

  • Use modern tools such as Aspen Capital Cost Estimator (ACCE), supported by vendor outreach and market data validation.

  • Deliver actionable feedback that goes beyond a “red-line” review to strengthen estimate methodology, assumptions, and risk posture.


Whether validating a $50 million project or a multi-billion-dollar program, our reviews aim to give decision-makers defensible, transparent, and trusted estimates.

The Bottom Line


A strong estimate does not guarantee project success, but a weak one almost guarantees problems. By investing in independent estimate reviews, organizations reduce the risk of surprises, improve confidence in decision-making, and create stronger negotiating positions with contractors.


At ROMAN Consulting Group, we combine industry best practices with practitioner experience to help ensure capital project estimates are both credible and competitive.


For a broader perspective on building estimate confidence, see our blogs on the Basis of Estimate (BoE), Should-Cost Estimating, and Top 5 Estimating Mistakes in Capital Projects. Together, these practices support stronger governance and more reliable capital project outcomes.

 
 
 

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