BOE : BASIS OF ESTIMATE

The BOE clearly define the design basis, planning basis, cost basis, and risk basis of the estimate .

1-Design Basis: The overall scope of the project should be summarized, with additional detail provided for each

2-Planning Basis: BOE should document information from the integrated project plan

3- Cost Basis: The source of all pricing used in the estimate should be documented in this section of the BOE. This would include the source of all bulk material pricing, the pricing of major equipment

4- Risk Basis: Since, by definition, every estimate is a prediction of probable costs, it is clear that every estimate involves uncertainty and risk