A Cost Estimate Classification applies the degree of project definition that is to define the budget, funding requirement, determine cash flow, and cost controls. The Cost Estimate Classification is improved by communications among all the stakeholders’ involvement with preparing, evaluating, and using cost estimates: the quality and value of information available to prepare cost estimates; the various methods employed during the estimating process; the accuracy level expected from estimates, and the level of risk associated with estimates. The Cost Estimate Classification as the primary characteristic for determining an estimate’s classification: Factored Estimate (Capacity or Equipment); Budgetary Cost Estimate; Control Budget Estimate: Detailed Estimate, etc.
AACE developed: Level 1 Screening or Feasibility; Level 2 Conceptual Study or Feasibility; Level 3 Budget Authorization or Control; Level 4 Control or for Bid; Level 5 Check Estimate or for Bid.
ASTM E2516 – 11 Standard Classification for Cost Estimate Classification System.
Related Definitions in the Project: The Cost Estimate (Estimation); Project Cost
