BASISOFESTIMATECOMPANYNAMESTREETADDRESSCITY,STATEZIPCODEDATEBasisofEstimateTemplateCostestimatesareanessentialpartofplanninganyproject.Ingeneral,themoredetailthatisincludedandthebetterplannedtheprojectisthebettercostriskscanbeidentifiedandmitigated.ThepurposeoftheBasisofEstimateistodocumentandcommunicatehowtheproject’scostestimatewasderivedandprovidesupportingdatatoestablishestimaterangesandconfidencelevels.TheBasisofEstimateshouldalsoincludeallknownassumptionsandconstraintswhichpertaintotheproject’scost.TheBasisofEstimateprovidesalargeamountofinformationwhichmayincludeahighlevelofdetail.Assuch,itshouldbeorganizedinamannerthatisconsistentthroughoutthedocumentandiseasytoreadandunderstand.Itmustalsoclearlycommunicatewhatisincludedintheprojectscope.ManytimestheBasisofEstimateisorganizedbyWBSitemswitheachlineitemdefinedbytheWBSDictionary’sdescriptionofthework.WBSitemsmaybelistedinahierarchicalmannerwithhigherlevelscapturingoverallcostsandcomponentandworkpackagelevelsbelowcapturinglowerlevelcosts.Thisapproachensuresthatthecostfiguresarepresentedwiththescopeoftheworktobeperformedinordertoprovideasolidunderstandingofwhatisinvolved.EachlineitemshouldincludetheinformationcontainedintheActivityCostEstimatefortheproject.However,theBasisofEstimateshouldincludemoredetailinordertounderstandexactlyhowcostswerederived.BasisofEstimatelineitemsshouldexplainexactlyhowtheestimatewascalculatedandwhatmethodologywasused.Thismayincludeinformationobtainedfromvendorquotes,previousexperiencewithsimilarprojects,projectedperunitpricing,knownwage/salaryrates,oranyotherknownpricingsources.Likemostotherprojectdocuments,theBasisofEstimateshouldbecontinuallyreviewedandeditedbasedontheprojectteamreceivingadditionalinformationormoredetail.DuringtheinitialcreatingofthedocumentitislikelythattheprojectteamwillnothavealloftherequireddetailforestimatingcostforeveryWBSlineitem.Asprojectplanningprogressesandtheprojectteambeginstoreceivemoreinformation,theBasisofEstimateshouldberevisedandtheconfidencele...
