Owner's cost estimate compared against submitted bid documents

For Developers, Owners & Public Entities

Estimating Assistance

Estimating work may support an owner’s evaluation of budgets, proposals or disputed values, depending on the engagement.

An estimating review may consider scope, quantities, resource assumptions, pricing sources and available comparisons. Differences among estimates may raise questions for further evaluation; neither a low price nor a detailed calculation alone determines the outcome.

The same discipline applies to a budget being set, a change proposal being evaluated, and work already performed whose value is contested, though the last depends heavily on what the project recorded at the time.

Spreadsheet of construction cost line items beside rolled drawings

Possible assignment considerations

In practice

  1. 01

    Consider quantity information

    Take quantities from the drawings on the owner's own account rather than checking the bidder's arithmetic.

  2. 02

    Build rates from components

    Assemble crew, production, equipment and material assumptions visibly so a submitted price can be tested against them.

  3. 03

    Compare and interrogate the differences

    Treat material divergence from a bid as information about how the scope has been read.

  4. 04

    State the basis

    Record assumptions, allowances and exclusions so the estimate can be relied on and challenged on the same terms.

Considerations and limitations

Questions and limitations to consider

Checking arithmetic instead of scope

Verifying that a bid adds up while missing what it has left out.

Comparing prices without their scope assumptions

Pricing assumptions or scope differences whose significance depends on the proposal, contract and project facts.

An estimate with a hidden basis

Without visible quantities, rates and assumptions, an estimate is hard to check or compare.

Estimating Assistance

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