BoE

Definition

Basis of estimate.

Purpose

The Basis of Estimate (BoE) provides a detailed explanation of how project estimates are developed, including the methodologies, assumptions, and data sources used. It ensures transparency and accuracy in cost estimation and serves as a reference for evaluating project scope, budget, and timeline.

Examples of Use

• Developing a BoE for a construction project to outline the assumptions and methods used to estimate costs and resources.
• Using a BoE in project management to provide stakeholders with a clear understanding of how estimates were derived.
• Applying a BoE to compare actual project costs against estimated costs for performance analysis and future planning.

Related Terms

• Cost Estimation: The process of predicting the costs of a project or operation.
• Project Scope: The defined goals, deliverables, tasks, costs, and deadlines of a project.
• Budget: An estimate of income and expenditure for a set period of time within a project.

Notes

A comprehensive BoE should include all relevant details to justify the estimates provided. Regular updates and revisions may be necessary as project conditions and assumptions change.