This article focuses on the application of a fit-for-use methodology to the process of performing estimate review and validation and covers the contractor’s and owner’s points of view. The major steps of the estimate review and estimate validation cycle are examined. How good is your estimate? These are the first words that we, as estimators, normally hear upon presenting our estimates to our management or to our customers; and they are the same words we ask when first receiving an estimate prepared by others. We, of course, would like to think that any estimate we prepare is of high quality (although not necessarily highly accurate), but how can we be sure that this is the case? This article will focus on a methodology for the process of reviewing and validating capital cost estimates—either those we prepare ourselves or those prepared by others. The major steps of the estimate review and validation process will be examined, and we will discuss the realistic goals of an estimate review process.
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