What is involved in Cost Estimation

Find out what the related areas are that Cost Estimation connects with, associates with, correlates with or affects, and which require thought, deliberation, analysis, review and discussion. This unique checklist stands out in a sense that it is not per-se designed to give answers, but to engage the reader and lay out a Cost Estimation thinking-frame.

How far is your company on its Cost Estimation journey?

Take this short survey to gauge your organization’s progress toward Cost Estimation leadership. Learn your strongest and weakest areas, and what you can do now to create a strategy that delivers results.

To address the criteria in this checklist for your organization, extensive selected resources are provided for sources of further research and information.

Start the Checklist

Below you will find a quick checklist designed to help you think about which Cost Estimation related domains to cover and 191 essential critical questions to check off in that domain.

The following domains are covered:

Cost Estimation, Cost estimate, AACE International, American Society of Professional Estimators, Best practices, Building estimator, Chemical plant cost indexes, Construction Management Association of America, Construction Specifications Institute, Construction bidding, Construction estimating software, Construction management, Cost contingency, Cost database, Cost engineering, Cost escalation, Cost estimation in software engineering, Cost overrun, General contractor, Glossary of construction cost estimating, Glossary of project management, Indirect costs, Industrial engineering, International Standard Book Number, Line items, Manufacturing cost, Order of magnitude, Outline of project management, Parametric estimating, Performance bond, Pre-construction services, Project Management Institute, Project cost management, Project management, Project management software, Quality assurance, Quality control, Quality costs, Quantity surveyor, Reserve study, Scientific Wild-Ass Guess, Software project management, Three-point estimation, Total cost management, Vendor bid analysis, Waste management:

Cost Estimation Critical Criteria:

Accommodate Cost Estimation failures and simulate teachings and consultations on quality process improvement of Cost Estimation.

– How do risk analysis and Risk Management inform your organizations decisionmaking processes for long-range system planning, major project description and cost estimation, priority programming, and project development?

– What are the success criteria that will indicate that Cost Estimation objectives have been met and the benefits delivered?

– What other jobs or tasks affect the performance of the steps in the Cost Estimation process?

Cost estimate Critical Criteria:

Rank Cost estimate management and interpret which customers can’t participate in Cost estimate because they lack skills.

– Are there any easy-to-implement alternatives to Cost Estimation? Sometimes other solutions are available that do not require the cost implications of a full-blown project?

– What are your key performance measures or indicators and in-process measures for the control and improvement of your Cost Estimation processes?

– Do several people in different organizational units assist with the Cost Estimation process?

AACE International Critical Criteria:

Recall AACE International management and probe AACE International strategic alliances.

– Record-keeping requirements flow from the records needed as inputs, outputs, controls and for transformation of a Cost Estimation process. ask yourself: are the records needed as inputs to the Cost Estimation process available?

– Will new equipment/products be required to facilitate Cost Estimation delivery for example is new software needed?

– Think of your Cost Estimation project. what are the main functions?

American Society of Professional Estimators Critical Criteria:

Be clear about American Society of Professional Estimators goals and oversee American Society of Professional Estimators requirements.

– Is the Cost Estimation organization completing tasks effectively and efficiently?

Best practices Critical Criteria:

Coach on Best practices management and devise Best practices key steps.

– What are the best practices for software quality assurance when using agile development methodologies?

– Does your organization have a company-wide policy regarding best practices for cyber?

– What are some best practices for gathering business intelligence about a competitor?

– Are CSI and organizational change underpinned by Kotters change management best practices?

– What best practices in knowledge management for Service management do we use?

– What best practices are relevant to your service management initiative?

– What are the best practices for implementing an internal site search?

– Are there any best practices or standards for the use of Big Data solutions?

– What are the a best practices for Agile SCRUM Product Management?

– What are some best practices for managing business intelligence?

– What are best practices for building something like a News Feed?

– What best practices are relevant to your itsm initiative?

– Do we adhere to best practices interface design?

– Which rules constitute best practices?

Building estimator Critical Criteria:

Generalize Building estimator tasks and oversee Building estimator requirements.

– What are the top 3 things at the forefront of our Cost Estimation agendas for the next 3 years?

– Why is Cost Estimation important for you now?

– How to deal with Cost Estimation Changes?

Chemical plant cost indexes Critical Criteria:

Analyze Chemical plant cost indexes projects and improve Chemical plant cost indexes service perception.

– What other organizational variables, such as reward systems or communication systems, affect the performance of this Cost Estimation process?

– How do we maintain Cost Estimations Integrity?

– Why are Cost Estimation skills important?

Construction Management Association of America Critical Criteria:

Check Construction Management Association of America decisions and get the big picture.

– What new services of functionality will be implemented next with Cost Estimation ?

– How does the organization define, manage, and improve its Cost Estimation processes?

– Do you monitor the effectiveness of your Cost Estimation activities?

Construction Specifications Institute Critical Criteria:

Mine Construction Specifications Institute results and get going.

– Who will be responsible for making the decisions to include or exclude requested changes once Cost Estimation is underway?

– Will Cost Estimation deliverables need to be tested and, if so, by whom?

– Have all basic functions of Cost Estimation been defined?

Construction bidding Critical Criteria:

Scan Construction bidding goals and be persistent.

– Where do ideas that reach policy makers and planners as proposals for Cost Estimation strengthening and reform actually originate?

– Is Cost Estimation Required?

Construction estimating software Critical Criteria:

Have a round table over Construction estimating software issues and diversify disclosure of information – dealing with confidential Construction estimating software information.

– How do your measurements capture actionable Cost Estimation information for use in exceeding your customers expectations and securing your customers engagement?

– Think about the functions involved in your Cost Estimation project. what processes flow from these functions?

– Why is it important to have senior management support for a Cost Estimation project?

Construction management Critical Criteria:

Discuss Construction management results and assess what counts with Construction management that we are not counting.

– Can we add value to the current Cost Estimation decision-making process (largely qualitative) by incorporating uncertainty modeling (more quantitative)?

– Who is the main stakeholder, with ultimate responsibility for driving Cost Estimation forward?

– What is the purpose of Cost Estimation in relation to the mission?

Cost contingency Critical Criteria:

Mix Cost contingency management and correct Cost contingency management by competencies.

– What may be the consequences for the performance of an organization if all stakeholders are not consulted regarding Cost Estimation?

– Who sets the Cost Estimation standards?

Cost database Critical Criteria:

Face Cost database goals and frame using storytelling to create more compelling Cost database projects.

– What are our best practices for minimizing Cost Estimation project risk, while demonstrating incremental value and quick wins throughout the Cost Estimation project lifecycle?

– What are internal and external Cost Estimation relations?

Cost engineering Critical Criteria:

Reconstruct Cost engineering results and describe the risks of Cost engineering sustainability.

– Among the Cost Estimation product and service cost to be estimated, which is considered hardest to estimate?

– Are we making progress? and are we making progress as Cost Estimation leaders?

– What are the usability implications of Cost Estimation actions?

Cost escalation Critical Criteria:

Adapt Cost escalation engagements and ask questions.

– Do we aggressively reward and promote the people who have the biggest impact on creating excellent Cost Estimation services/products?

– What role does communication play in the success or failure of a Cost Estimation project?

Cost estimation in software engineering Critical Criteria:

Substantiate Cost estimation in software engineering failures and learn.

– Who is responsible for ensuring appropriate resources (time, people and money) are allocated to Cost Estimation?

– What tools and technologies are needed for a custom Cost Estimation project?

– Who are the people involved in developing and implementing Cost Estimation?

Cost overrun Critical Criteria:

Reason over Cost overrun adoptions and handle a jump-start course to Cost overrun.

– Do those selected for the Cost Estimation team have a good general understanding of what Cost Estimation is all about?

– How do we Improve Cost Estimation service perception, and satisfaction?

General contractor Critical Criteria:

Mine General contractor management and arbitrate General contractor techniques that enhance teamwork and productivity.

– In the case of a Cost Estimation project, the criteria for the audit derive from implementation objectives. an audit of a Cost Estimation project involves assessing whether the recommendations outlined for implementation have been met. in other words, can we track that any Cost Estimation project is implemented as planned, and is it working?

Glossary of construction cost estimating Critical Criteria:

Value Glossary of construction cost estimating failures and acquire concise Glossary of construction cost estimating education.

– How do we make it meaningful in connecting Cost Estimation with what users do day-to-day?

– How do we measure improved Cost Estimation service perception, and satisfaction?

Glossary of project management Critical Criteria:

Boost Glossary of project management goals and separate what are the business goals Glossary of project management is aiming to achieve.

– How do we know that any Cost Estimation analysis is complete and comprehensive?

Indirect costs Critical Criteria:

Mine Indirect costs governance and maintain Indirect costs for success.

– How are the subunit s indirect costs allocated to products?

– How are a subunit s indirect costs allocated to products?

– Are there recognized Cost Estimation problems?

– How do we Lead with Cost Estimation in Mind?

– What are our Cost Estimation Processes?

Industrial engineering Critical Criteria:

Adapt Industrial engineering decisions and get going.

– How will we insure seamless interoperability of Cost Estimation moving forward?

International Standard Book Number Critical Criteria:

Drive International Standard Book Number issues and find the ideas you already have.

– What tools do you use once you have decided on a Cost Estimation strategy and more importantly how do you choose?

– Is the scope of Cost Estimation defined?

Line items Critical Criteria:

Match Line items projects and handle a jump-start course to Line items.

Manufacturing cost Critical Criteria:

Experiment with Manufacturing cost planning and ask what if.

– What are the short and long-term Cost Estimation goals?

Order of magnitude Critical Criteria:

Cut a stake in Order of magnitude tasks and budget for Order of magnitude challenges.

– Is there a Cost Estimation Communication plan covering who needs to get what information when?

– Do we have past Cost Estimation Successes?

Outline of project management Critical Criteria:

Disseminate Outline of project management visions and oversee Outline of project management management by competencies.

– A compounding model resolution with available relevant data can often provide insight towards a solution methodology; which Cost Estimation models, tools and techniques are necessary?

Parametric estimating Critical Criteria:

Illustrate Parametric estimating leadership and frame using storytelling to create more compelling Parametric estimating projects.

– What is our formula for success in Cost Estimation ?

Performance bond Critical Criteria:

Guide Performance bond engagements and optimize Performance bond leadership as a key to advancement.

– Do we cover the five essential competencies-Communication, Collaboration,Innovation, Adaptability, and Leadership that improve an organizations ability to leverage the new Cost Estimation in a volatile global economy?

– How do mission and objectives affect the Cost Estimation processes of our organization?

Pre-construction services Critical Criteria:

Investigate Pre-construction services failures and customize techniques for implementing Pre-construction services controls.

– Does Cost Estimation create potential expectations in other areas that need to be recognized and considered?

– Do the Cost Estimation decisions we make today help people and the planet tomorrow?

Project Management Institute Critical Criteria:

Communicate about Project Management Institute failures and report on developing an effective Project Management Institute strategy.

– What vendors make products that address the Cost Estimation needs?

Project cost management Critical Criteria:

Chart Project cost management strategies and use obstacles to break out of ruts.

– How is the project going to be structured for purposes of management?

– How should the costs be allocated and what should the sponsor do?

– Are regulatory inspections considered part of quality control?

– Describe the Leadership and Motivation for the Project Team?

– Project Dates: When does the project start and complete?

– What investment funds will the project need and when?

– Is this the first time this team has worked together?

– How much people change will this project require?

– What would adopting the change proficiently mean?

– Task Tracking: How will the project be tracked?

– Is there any support in the business or in IT?

– What is the necessity of a Project Manager?

– Are original requirements being satisfied?

– What sources of information are reliable?

– What s the status of the documentation?

– What is the meaning of Group cohesion?

– What information should be collected?

– Are new applications cost justified?

– Who would sign off on the charter?

– What is risk ?

Project management Critical Criteria:

Read up on Project management quality and report on developing an effective Project management strategy.

– From an organizational perspective, what are the trade-offs involved in shifting all project management to an agile approach, versus maintaining a mixed portfolio of agile and traditional development?

– Are there project management practices that remain constant across traditional, hybrid, and agile approaches (e.g., Risk Management, stakeholder management, team building)?

– How can a company arrange a new project if the management does not know when they will finish the current projects and when the employees will be free to take on a new project?

– Key problem solving knowledge resides with the knowledge workers, and not the manager. So, how do we adapt project management techniques to deal with this key reality?

– Can we say that the traditional project team is not self-organized, no matter how complex the project is, and what level of team we are discussing?

– Are there metrics and standards that can be used for control of agile project progress during execution?

– Will the metrics and measurement techniques to determine project success (or failure) need to change?

– What scenarios in terms of projected cost, schedule, and scope could/should we plan for?

– So, how do we adapt project management techniques to deal with this key reality?

– Justification: what are your research questions and how do you motivate them?

– What is important in the kick-off meeting to enable feedback and learning?

– What s the protocol for interaction, decision making, project management?

– Does implementation of project management require a culture change?

– Why are project management models not used in maintenance?

– Agile Project Management and PRINCE2 9 – one or the other, or both?

– What work wouldnt get done if no more funds were added?

– What is Turnkey Operation in Project Management?

– How much project management is needed?

– Velocity -how fast are we going?

– When is done done?

Project management software Critical Criteria:

Huddle over Project management software decisions and modify and define the unique characteristics of interactive Project management software projects.

– Who will be responsible for documenting the Cost Estimation requirements in detail?

Quality assurance Critical Criteria:

Investigate Quality assurance goals and get going.

– Is the Quality Assurance function recognized to be different from implicit and continuous quality control during fabrication, in that it is discrete, explicit following production, and ignores the sequence or nature of the fabrication steps or processes?

– Does a quality plan exist for significant it functions (e.g., system development and deployment) and does it provide a consistent approach to address both general and project-specific Quality Assurance activities?

– Does the Quality Assurance record center contain copies of all previous revisions of the documents, including copies of applicable change notices?

– What is your Quality Assurance process to ensure that the large volumes of data gathered in the monitoring process are handled efficiently?

– How do company leaders guide the organization toward a common purpose of quality based on shared values and priorities?

– Does the Quality Assurance process include a review of adherence to it policies, procedures and standards?

– How does the company create high performance relationships with its independent trade partners?

– Are Quality Assurance records stored in folders, binders, or other suitable protection?

– What is the process for grading the application of qa requirements for activities?

– Are qa audits, surveillances, and nonconformance reports part of the qa program?

– How do you assure that repairs and/or preventative maintenance were completed?

– How can we integrate Customer Service into our Quality Assurance program?

– Were adequate human factors considered in the design of the equipment?

– Do you keep track of unsuccessfully performed skills?

– How is the value delivered by Cost Estimation being measured?

– Who is responsible for overseeing this process?

– How often are your current policies evaluated?

– Who provides training for any new protocol?

– Are standardized tests available?

– Is the qa plan approved?

Quality control Critical Criteria:

Chat re Quality control engagements and stake your claim.

– Do we conduct regular data quality audits to ensure that our strategies for enforcing quality control are up-to-date and that any corrective measures undertaken in the past have been successful in improving Data Quality?

– Marketing budgets are tighter, consumers are more skeptical, and social media has changed forever the way we talk about Cost Estimation. How do we gain traction?

– Have we established unit(s) whose primary responsibility is internal audit, Quality Assurance, internal control or quality control?

– What policies do we need to develop or enhance to ensure the quality control of data gathered?

– What quality control measures will be used to ensure the program progresses as planned?

– Do we regularly review and update its Data Quality control procedures?

– Do we all define Cost Estimation in the same way?

– What is your quality control system?

– What about quality control? Defects?

– What about quality control?

Quality costs Critical Criteria:

Be responsible for Quality costs tasks and ask questions.

– Does Cost Estimation systematically track and analyze outcomes for accountability and quality improvement?

– Meeting the challenge: are missed Cost Estimation opportunities costing us money?

Quantity surveyor Critical Criteria:

Conceptualize Quantity surveyor goals and improve Quantity surveyor service perception.

– What are the key elements of your Cost Estimation performance improvement system, including your evaluation, organizational learning, and innovation processes?

– Are there Cost Estimation problems defined?

Reserve study Critical Criteria:

Participate in Reserve study governance and inform on and uncover unspoken needs and breakthrough Reserve study results.

– What knowledge, skills and characteristics mark a good Cost Estimation project manager?

– What potential environmental factors impact the Cost Estimation effort?

Scientific Wild-Ass Guess Critical Criteria:

Prioritize Scientific Wild-Ass Guess visions and attract Scientific Wild-Ass Guess skills.

– Are we Assessing Cost Estimation and Risk?

Software project management Critical Criteria:

Illustrate Software project management strategies and inform on and uncover unspoken needs and breakthrough Software project management results.

– what is the best design framework for Cost Estimation organization now that, in a post industrial-age if the top-down, command and control model is no longer relevant?

Three-point estimation Critical Criteria:

Guide Three-point estimation strategies and adjust implementation of Three-point estimation.

– When a Cost Estimation manager recognizes a problem, what options are available?

– Is there any existing Cost Estimation governance structure?

Total cost management Critical Criteria:

Investigate Total cost management planning and interpret which customers can’t participate in Total cost management because they lack skills.

– How do you determine the key elements that affect Cost Estimation workforce satisfaction? how are these elements determined for different workforce groups and segments?

– What are current Cost Estimation Paradigms?

Vendor bid analysis Critical Criteria:

Brainstorm over Vendor bid analysis risks and assess and formulate effective operational and Vendor bid analysis strategies.

– Is maximizing Cost Estimation protection the same as minimizing Cost Estimation loss?

– Which individuals, teams or departments will be involved in Cost Estimation?

– Is Supporting Cost Estimation documentation required?

Waste management Critical Criteria:

Check Waste management tasks and budget the knowledge transfer for any interested in Waste management.

– Are accountability and ownership for Cost Estimation clearly defined?

– Are there Cost Estimation Models?


This quick readiness checklist is a selected resource to help you move forward. Learn more about how to achieve comprehensive insights with the Cost Estimation Self Assessment:


Author: Gerard Blokdijk

CEO at The Art of Service | theartofservice.com

[email protected]


Gerard is the CEO at The Art of Service. He has been providing information technology insights, talks, tools and products to organizations in a wide range of industries for over 25 years. Gerard is a widely recognized and respected information expert. Gerard founded The Art of Service consulting business in 2000. Gerard has authored numerous published books to date.

External links:

To address the criteria in this checklist, these selected resources are provided for sources of further research and information:

Cost Estimation External links:

Free cost estimation for registration of IP types worldwide

Service Acquisition Mall – ARRT Cost Estimation

Cost Estimation Methods – University of North Florida

AACE International External links:

AACE International Southern California Section

More! | AACE International

2018 Western Winter Workshop – AACE International …

American Society of Professional Estimators External links:

American Society of Professional Estimators – Certification

ASPE National – American Society of Professional Estimators

Best practices External links:

ALTA – Best Practices

Best Practices — Attorneys Title I North Carolina

Best Practices – Independence Title

Building estimator External links:

The building estimator’s guide, (Book, 1928) [WorldCat.org]

Building Estimator – AbeBooks

Chemical plant cost indexes External links:

Chemical plant cost indexes – Revolvy
update.revolvy.com/topic/Chemical plant cost indexes

chemical plant cost indexes chile – galogistics.in

Construction Management Association of America External links:

CMAAAZ – Construction Management Association of America

Construction Management Association of America – …

Construction Specifications Institute External links:

Construction Specifications Institute – Prometric

Home – Construction Specifications Institute

CDT – Construction Specifications Institute

Construction bidding External links:

Construction bidding for profit (eBook, 1979) …

Highway and Bridge Construction Bidding – codot.gov

Construction estimating software External links:

Construction Estimating Software

Clear Estimates | Construction Estimating Software

Construction Estimating Software | On Screen Takeoff | …

Cost contingency External links:

CiteSeerX — Cost Contingency as the Standard Deviation …

How Cost Contingency is Calculated? – Project Control …

Cost database External links:

Capital Cost Database | FTA

RSMeans Online Construction Cost Database

Life-cycle cost database (Book, 1983) [WorldCat.org]

Cost engineering External links:

Cost Engineering – Tools, Research, Analysis, Metrics – IPA

Cost Engineering Academy

SEA 05C – Cost Engineering and Industrial Analysis Division

Cost escalation External links:

Cost escalation in nuclear power (Book, 1978) …

Cost overrun External links:

Cost Overrun Optimism: Fact or Fiction

U.S. GAO – Proper Appropriation To Be Charged Cost Overrun

Predicting cost overrun of railroad bridge construction

Glossary of construction cost estimating External links:

View topic – Glossary of construction cost estimating link

Glossary of construction cost estimating – PlanOpedia

Glossary of project management External links:

PMI – Glossary of Project Management terms

Indirect costs External links:

What are Direct Costs vs Indirect Costs? – Income\|Outcome

Examples of Direct and Indirect Costs | Chron.com

International Standard Book Number External links:

What is an ISBN (International Standard Book Number)?

[PDF]International Standard Book Number: 0-942920-53-8

ISBN: International Standard Book Number for Self …

Line items External links:

[PDF]PO Unit of Measure (UOM) for Line Items – Welcome to …

Manufacturing cost External links:

[PDF]Manufacturing Cost Annual – cdfa.ca.gov

Manufacturing Cost Of Viagra | SunDrugstore

Manufacturing Cost Estimates and Product Development …

Order of magnitude External links:

Order Of Magnitude – The Paranormal & Personal – Google+

[PDF]Order of Magnitude Guidance [Updated 10 August …

What is order of magnitude? – Definition from WhatIs.com

Parametric estimating External links:

[PDF]Parametric Estimating Handbook, 4th Edition

Analogous Estimating vs Parametric Estimating – PMP …

[PDF]An Introduction to Parametric Estimating

Performance bond External links:

Performance Bond – GSA

Performance Bond – JW Surety Bonds

What is a performance bond and how does it work? – Quora

Pre-construction services External links:

Pre-Construction Services — American Direct

Project Management Institute External links:

PMI – Project Management Institute :: Pearson VUE

CCRS | Project Management Institute

PMI – Project Management Institute

Project cost management External links:

5 Project Cost Management – mindedge.com

Project Cost Management Flashcards | Quizlet

Project Cost Management For Dynamics AX – SIS Software

Project management External links:

Certifications | Project Management Institute

monday – Project management software teams actually love

CCRS | Project Management Institute

Project management software External links:

dapulse – Project management software teams actually love

Quality assurance External links:

Quality Assurance Job Titles | Enlighten Jobs

Quality assurance titles Jobs – Yakaz

Title Quality Assurance Jobs, Employment | Indeed.com

Quality control External links:


[PDF]Porter-Cologne Water Quality Control Act – 2018 …

Ardent Services, Inc. | Quality Control Evaluation Services

Quality costs External links:

Principles of Quality Costs, Fourth Edition | ASQ

4 Types of Quality Costs Flashcards | Quizlet

Quantity surveyor External links:

Home | TruEst Quantity Surveyor

Quantity Surveyor Salaries in the United States | Indeed.com

Reserve study External links:

[PDF]RESERVE STUDY GUIDELINE – California Bureau of …

HOA Reserve Study Software Smartproperty

Software project management External links:

Full-stack Software Project Management Tools – Unfuddle

Total cost management External links:

Pharmacy: Total Cost Management | UnitedHealthcare

Total Cost Management Framework – Goodreads

What Are Cost Engineering & Total Cost Management

Vendor bid analysis External links:

Vendor bid analysis – WOW.com

Using Selection Criteria in Vendor Bid Analysis

44 Vendor Bid Analysis v1 – Hocpmp.Com – H?c Luy?n Thi …

Waste management External links:

Waste Management – Franklin, WI – Home | Facebook

Waste Management

Franklin, WI Waste Management – Yellowpages.com

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