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

How Fact-Based Cost Modeling Strengthens Negotiation Power in Capital Projects | ROMAN Consulting Group 

In capital projects, price and value rarely align. 

That is where should-cost estimating becomes essential, helping owners uncover what a project ought to cost under optimal conditions, not just what a contractor quotes. 

A should-cost estimate is a transparent, bottom-up model that removes inflated assumptions, inefficiencies, and hidden markups. It represents the lowest defensible CapEx, providing a benchmark for negotiation and bid validation. This connects directly to the fundamentals of capital project estimating, where early definition and data quality determine confidence. 

The process begins with a solid Bill of Materials (BOM), often generated using Aspen Capital Cost Estimator (ACCE), then refined through market-validated pricing, local labor adjustments, and expert judgment on indirects and contingencies. 

Every assumption and parameter must be captured clearly in the Basis of Estimate (BoE) to ensure transparency and traceability. 

Building a Should-Cost Estimate: A step-by-step process that combines BOM development, validated material costs, labor and indirect factors, and the removal of inefficiencies to deliver a defensible, transparent project baseline.

When used effectively, should-cost estimating empowers owners to negotiate with insight, validate EPC bids, and avoid recurring estimating mistakes in capital projects that often surface late in execution. 

So how close is your project’s price to its true value? 

At ROMAN Consulting Group, we help owners and developers strengthen their estimating practices by building independent should-cost models, validating contractor pricing, and benchmarking cost expectations using structured methods and market intelligence. Our approach reduces cost uncertainty, improves negotiation leverage, and ensures investment decisions are supported by transparent, defensible data. 

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