ESTIMATE DELIVERABLE
The basis behind
your industrial estimate.
A Basis of Estimate explains the assignment and the information used, so another project team member can understand the estimate without guessing the missing context.
1. Purpose and scope
State whether the assignment is a takeoff, subcontract bid, construction budget or scope comparison. Identify the trades, systems, work areas and battery limits included. Distinguish equipment purchase from the associated contractor installation work.
2. Input register
List drawings, revisions, schedules, specifications and relevant vendor information. Identify input gaps and documents expected later. An estimate based on an earlier vendor layout should not silently be described as reflecting a later equipment selection.
3. Measurement basis
Define the units and relevant conventions: route length versus cut length, shop versus field joints, net versus gross areas, or member-level steel quantities. Separate measured quantities from allowances and describe how incomplete information was treated.
4. Pricing basis
Record the location, date, supplier quotations, labor basis and equipment assumptions used. Identify quote validity and exclusions. Distinguish material cost, installation labor, equipment, subcontract amounts and any separately applied indirect costs.
5. Assumptions, allowances and exclusions
Use clear descriptions that can be reconciled against the estimate rows. A blanket exclusion should not contradict a measured or priced item. Open interfaces need a stated treatment, particularly around owner-furnished equipment and existing-plant tie-ins.
6. Uncertainty and changes
Identify unverified existing conditions, missing scope information and the review points that can materially affect cost. Record how later addenda or updated quotations will be handled. Estimate class should not be used as a universal guarantee of a fixed accuracy percentage.
Download the blank BOE template ↓Reference: AACE Basis of Estimate discussion. The downloadable checklist is our original blank planning template, not an AACE form.