Estimating

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All information used and/or developed for the estimate must be documented and kept at least until the project is completed and audited. This includes drawings. take-offs, preliminary sketches, vendor quotations. etc. The backup information is required for cost and scope tracking and control as well as final cost analysis.

Physical Breakdown
With the exception of factored estimates, all others, from conceptual to engineering. must have the potential of being broken down into discrete components that can be related to the pro-ject schedule. The estimate breakdown is avery important toolfor pro-iect planningas well asscope, cost. andprogress tracking. In the case of conceptualandpreliminaryestimates. the breakdown is required to prepare the master schedule and project execution plan (see Chapter 8). In the case of definitive and engineering estimates. it is essential to the preparation of the cost tracking and construction progress monitoring systems. The extent of the breakdown is dependent on the availability of time and scope details. However, a thorough one must be provided with appropriation estimates or when there is a high probability of executing theproject. THE COMPONENTS OF THE ESTIMATE BREAKDOWN MUST BE QUANTIFIABLE AND SMALL ENOUGH TO BE EASILYCOMPREHENDEDANDEVALUATEDBYSIMPLE OBSERVATION WITHOUT GOING TO THE DETAILS COUNTING AND TRACKING"NUTS AND BOLTS."

OF

The estimate canbe broken down to various levels of detail consistent with the:
- Availability of information. - Magnitude of the project. - Need to keep components

small enough for evaluation

by simple

observation. The first level of breakdown is obviouslythe oneshown in theCost Estimate Summary (Fig. 10.4). This level is sufficientfor the preparation of preliminary execution plans andmaster schedules. The second level wouldbethe breakdownof all first level components by process areasor steps.utilityareas,and common facilities. Thisbreakdown is required for more advanced planning. The actualcost and progresstracking,especially on largerprojects, require further breakdown of cost items, such as: