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Planning Estimate

A cost estimate for general planning and budgeting purposes only. Planning estimates will be used when there is a need for an order-of-magnitude estimate, but sufficient definitive information is lacking that would allow the development of a total estimated cost. Planning estimates are developed for each project (program) at the time of project identification. Since these are developed before conceptual design, they are order-of magnitude only and have the least amount of accuracy and lowest confidence level. Care should be exercised in these estimates to ensure that the order of magnitude is correct, since a tendency exists to avoid changing, particularly upward, this estimate once established.

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  • Finance
  • Procurement

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