Is Your Basis of Estimate (BoE) Setting Your Capital Project Up for Success?

In capital project estimating, the Basis of Estimate (BoE) often gets less attention than it deserves. It may not grab headlines like total installed cost or ROI—but it’s one of the most critical documents in the estimating process.

A well-developed BoE provides the transparency, rationale, and methodology behind the numbers. Without it, even a detailed estimate becomes hard to defend. With it, you gain alignment, traceability, and credibility across your project team.

At ROMAN Consulting Group, we view the BoE as more than a formality—it's a strategic tool. Here’s why it matters and what to watch for.

Why the BoE Matters in Capital Project Estimating

The BoE is where your estimate gets its voice. It tells the story behind the cost figures—how they were developed, what assumptions were made, what’s included (and not), and what sources were used.

An effective BoE does the following:

• Clarifies assumptions, constraints, and exclusions

• Documents methodologies and cost sources

• Enables estimate review and change tracking

• Supports internal and external approvals

• Reduces misunderstandings between stakeholders

In short, the BoE transforms an estimate from a number on a page into a defensible, decision-making tool.

3 Common BoE Pitfalls—and How to Avoid Them

Through our work supporting industrial owners, EPCs, and project teams, we’ve seen recurring issues that undermine the value of the BoE. Here are three you’ll want to avoid.

1. Lack of Clear Assumptions

A BoE without defined assumptions is like a contract without terms. If team members or reviewers aren’t sure what was assumed for scope, quantities, or market conditions, they’re left to guess—and guesswork breeds confusion.

The risk: Misrepresented costs, misalignment with reality, and avoidable rework.

How to avoid it: We help clients develop comprehensive BoEs that document assumptions, constraints, and exclusions in plain language—so everyone is operating from the same foundation.

2. Failure to Update the BoE as the Project Evolves

Projects evolve. Scope changes. Design matures. Market conditions shift. And yet, many teams treat the BoE like a one-time deliverable, created at the start and left untouched.

The risk: Your estimate may no longer match your current project, leading to poor decisions and credibility loss.

How to avoid it: We support organizations in maintaining dynamic BoEs that evolve with the project. When the BoE is updated in parallel with scope and cost development, your estimates stay accurate, relevant, and review-ready.

3. Lack of Stakeholder Alignment

It’s not uncommon for different stakeholders to have different understandings of project assumptions. When those aren’t reconciled and documented in the BoE, misaligned expectations—and estimates—are the result.

The risk: Internal friction, funding delays, or scope disputes.

How to avoid it: ROMAN works with clients to drive stakeholder alignment during BoE development. We ensure that scope assumptions, estimating approaches, and key inputs are agreed upon and clearly reflected in the document—before costs are locked in.

The Basis of Estimate is More Than a Checklist—It’s a Strategic Asset

When done well, the Basis of Estimate builds trust. It shows that your estimate is grounded in reality—not guesswork. It provides a clear path for review and revision. And it serves as the glue that holds your cost framework together across scope, time, and stakeholders.

At ROMAN Consulting Group, we guide teams through the full estimating process—from BoE creation to estimate development and risk-informed contingency planning. If your project is gearing up and you want to ensure your foundation is solid, let’s talk.

Because estimating isn’t just about numbers—it’s about clarity, credibility, and control.