This recommended practice (RP) of AACE® International defines the basic elements of and provides broad guidelines for the cost estimate validation process. Validation is a quality-focused sub-element of the estimate review process step in the cost estimating and budgeting process of the Total Cost Management (TCM) Framework. It is related to the practice of benchmarking; while both use quantitative metrics, benchmarking is focused more on system performance as opposed to estimate quality. Validation applies to both cost estimates and schedule duration estimates; however, this RP covers only the cost estimate. This RP is applicable to all cost estimate types for any industry and is intended for those responsible for and/or participating in estimate development and review. Expert knowledge is not required to understand or use this RP.

This RP is intended to provide guidelines (i.e., not a standard) for validating cost estimates. Most practitioners would consider these guidelines as good and reliable practices. It is recommended to consider using these guidelines where applicable.