Prepare estimates for a defined scope of work

This standard is about preparing estimates for a defined scope of work and the periodic reforecasting of estimates.

You will need to be able to apply the principles and techniques of estimating to prepare estimates for time, cost, resource and potentially carbon, determine their accuracy, present information on the estimate to stakeholders and justify that the estimating information meets the requirements of the project.

Who this standard is for
This standard is for project controls-related roles, including project controls engineers, estimators, planners, schedulers, cost controllers, risk analysts, risk managers and contract managers.

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1. take into account the requirements of other project controls functions when estimating, including:
   • schedules
   • budgets
   • cost baselines
   • risks
2. gather and validate information required to produce estimates as required
3. benchmark and normalise data throughout the project life cycle to inform future estimates
4. identify internal and external factors that impact on the estimates, including:
   • risks
   • interfaces
   • assumptions
   • dependencies
5. select appropriate techniques to develop logically structured estimates that:
   • meet the defined scope of work
   • reflect on/achieve a specified level of accuracy (estimate class)
   • incorporate the relevant breakdown structures and coding
   • accurately account for impacting factors
6. ensure estimates meet the technical, commercial, environmental, social and governance requirements of the project
7. prepare estimating documentation including the basis estimate/estimate narrative to provide a sound basis for decision making and confidence in the estimates including:
   • configuration control
   • sources used
8. how to develop the relationship between the schedule and the estimate
9. use appropriate estimating assurance techniques to determine the accuracy of the estimating information
10. utilise software appropriate to creating estimates
11. the relationship between the base estimate and the risk process, including the risk model and the contingency generated
12. prepare an estimating framework, including recommended classes of estimates to meet project needs at different stages of the project life cycle
13. present estimates to stakeholders

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1. the principles and purpose of estimate classes including their benefits and limitations and degree of certainty/estimate ranges
2. how to interpret requirements included in specifications and technical documents to inform the estimate
3. internal and external factors that impact on the estimates
4. information required for producing time and cost estimates and how the level of that information affects accuracy including:
   • the key terms used
   • risk and contingency
   • work breakdown and cost breakdown coding structures
5. how estimating links to other disciplines and the benefits of good estimating
6. the different estimate assurance techniques used and how to apply them
7. the key aspects of whole life costing
8. means of specifying resources and how this links to schedule durations
9. styles and formats for presenting estimates to stakeholders
10. the key aspects of benchmarking, how this supports good practice, and the normalisation process
11. the application, benefits and limitations of software in support of estimating
12. how to develop a basis of estimate/estimate narrative and their advantages and disadvantages
13. the advantages and disadvantages of estimating:
    • techniques
    • methods
    • classes
    • frameworks
14. the purpose of and how to develop an estimating framework
15. inter-relationships and assumptions

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Additional information:

Estimates
Estimates produced may be for:

• carbon
• cost
• resource
• time

Basis of estimate/estimate narrative
These may include:

• configuration control
• information sources used
• assumptions
• probability
• degree of certainty/estimate ranges
• norms
• benchmarks
• risks
• uncertainties
• contingencies
• source data
• methodology used

Time and cost estimates
The content of a time and cost estimate may include:

• quantity and cost of resources
• work hours (norms and productivity factors)
• allowances
• statement of assumptions and exclusions
• cost profile over specified timescales
• forward escalation
• cash flows

Estimating techniques
These may include:

• bottom up
• comparative
• parametric
• scaled
• top-down unit cost analysis

Factors that impact on the estimate
These may include:

• risks
• interfaces
• assumptions
• dependencies
• context of the estimate i.e. sector or technological
• time and resource available to create the estimate
• the quality required for the project outputs
• required scope for delivery
• human factors such as optimism bias

Estimate assurance techniques
These may include:

• adherence to Governance and Authorisation procedures and gateways
• benchmarking - comparisons to historical data, published data, and other projects
• estimate integrity analysis
• estimate risk analysis, including estimate contingency generation
• estimate cost analysis
• reference class forecasting
• review of assumptions
• review of documentation
• review of estimate inputs and outputs

Estimating information
This may include:

• time and cost estimates
• carbon estimates
• estimate framework
• basis of estimate/estimate narrative

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1

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2029

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Current

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Original

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Engineering Construction Industry Training Board

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ECI PC21, ECI PC24, ECI PC69

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Contract Manager, Engineer, Estimator, Risk Manager, Project Controls, Cost controller, Planner, Scheduler, Risk analyst

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Estimates; time; cost; estimate strategy; classes of estimate; estimating techniques; basis of estimate; estimate narrative; estimate framework; estimate assurance techniques; benchmarking; risk analysis; breakdown and coding structures.

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