Is Your Basis of Estimate Setting Your Project Up for Success?

Building Credibility and Transparency Into Every Estimate | ROMAN Consulting Group 

A strong Basis of Estimate (BoE) is more than a document; it is the audit trail behind every project number. 

It defines scope, methods, and data sources, clarifies what is included or excluded, and shows decision makers how uncertainty has been treated. A well-built BoE gives reviewers confidence that the estimate is transparent, credible, and defensible. For a concise overview of estimating fundamentals, see What Is Capital Project Estimating. 

Basis of Estimate (BoE) — On One Page. Build in parallel. Make it replicable. Reduce cost uncertainty. Five checks for capital project estimating: Boundaries, Methods, Dates, Uncertainty, Change. With FEL-1 and FEL-2 cues.

Basis of Estimate on One Page: Five checks for estimating quality including Boundaries, Methods, Dates, Uncertainty, and Change with cues for FEL 1 and FEL 2 stages. 

High-quality BoEs follow five habits: 

1. Document assumptions clearly and link them to the WBS. 

2. Time-stamp pricing bases and note escalation indices to prevent quiet drift. 

3. Show how the number moved since the last gate to support Independent Estimate Reviews. 

4. Separate uncertainty tools so mitigation, contingency, and reserves remain distinct. 

5. Design for an independent read using consistent codes, units, and plain language. 

During FEL 1, boundaries and early assumptions carry the estimate; using PDRI helps structure definition. Early framing of risks, as discussed in When to Start Risk Analysis in Front End Loading, strengthens transparency. 

By FEL 2, quantities and methods take the lead, supported by benchmarking and dated quote logs. For a companion method that adds commercial leverage, see Should-Cost Estimating. 

Common pitfalls such as implied scope, expired quotes, or contingency hiding scope often mirror those found in Top 5 Estimating Mistakes in Capital Projects. 

At ROMAN Consulting Group, we help clients strengthen estimate credibility by developing clear, structured Basis of Estimate documents that improve transparency, traceability, and decision readiness. Our work includes independent estimating support, estimate reviews, and FEL-stage guidance so project teams enter each gate with well-defined scope, documented assumptions, and a defensible cost foundation. 

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Related Articles 

• When to Start Risk Analysis in Front End Loading (FEL/FEP) 

• Should-Cost Estimating: Closing the Gap Between Price and Value 

• Project Definition Rating Index (PDRI) in Capital Projects