This Recommended Practice (RP) of AACE International defines the basic elements of and provides broad guidelines for the cost estimate review, validation and documentation process. Estimate review and documentation is a step in the cost estimating and budgeting process of the Total Cost Management (TCM) Framework. This RP is applicable to all estimate types for any industry and is intended for those responsible for and/or participating in an estimate review. Expert knowledge is not required to understand or use this RP.

This RP is intended to provide guidelines (i.e., not a standard) for reviewing, validating and documenting estimates. Most practitioners would consider these guidelines as good and reliable practices. It is recommended to consider using these guidelines where applicable.

Cost estimates typically represent a complex compilation and analysis of input from many project stakeholders. To ensure the quality of an estimate, budget or bid, a review process is required to ensure that the estimate meets project and organization requirements. The project plan typically requires that the cost estimate:
• Reflect the project strategy, objectives, scope and risks
• Be suitable for a given purpose (e.g., cost analysis, decision making, control, bidding, etc.)
• Address the stakeholders’ financial and performance requirements
• Ensure that all parties agree on and understand the estimate’s basis, content and outcome, including the estimate’s probabilistic characteristics (e.g., range, cost distribution, etc.).