Ensure your project budgets are realistic and reliable
## Ensure Your Project Budgets Are Realistic and Reliable Lenders and investors demand confidence in project budgets. Incomplete or optimistic estimates often lead to cost overruns. Research from Vista Projects shows that "the base cost estimate and its validation are highly significant to the success of any project." For owners, an inaccurate estimate can mean the project's expected returns may not be realized. Cost validation is the process of independently checking the estimate to ensure it's realistic and well-documented.
Confirm Scope & Assumptions Verify the project scope is complete using tools like PDRI and that productivity or unit-cost assumptions have credible sources.
Benchmarking Compare the estimate to vendor quotes, cost databases, or similar past projects. According to RSMeans, aligning with market data helps spot any low or high outliers.
Risk & Contingency Check that contingency levels are appropriate. Perform sensitivity analysis on major cost drivers to see how changes affect the total.
The result is a validated cost basis ready for decision-makers. This means a documented estimate with clear assumptions and contingency, often supported by third-party quotes or data. A defendable estimate supports bankable financial models and procurement strategies, reducing surprises in later phases.
We conduct independent cost reviews through our Financial & Investment Analysis service. Our team cross-checks client estimates against market benchmarks and runs contingency analysis so stakeholders can confidently move forward with funding.
Our team can help you implement these strategies in your projects. Schedule a consultation to discuss your specific needs.
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