This recommended practice (RP) is a guideline for the development of cost estimate plans for the building and general construction industry. With reference to the Total Cost Management (TCM) Framework, this document addresses the need to develop effective estimate plans.

This RP is intended to provide a guideline (i.e., not a standard) for establishing and communicating how to prepare, review and approve an estimate plan.

The basic principles of cost estimate plans can be applied to various contracting strategies, project execution approaches and asset owner configurations in the building and general construction industries. Some key principles are:
• Preparation of an estimate plan helps to ensure successful estimate completion in an effective and timely manner.
• Engaging key stakeholders in estimate planning prior to starting the estimate improves the likelihood of meeting estimate objectives.
• The estimate plan defines what information is required from who and when.
• An approved estimate plan provides a duly authorized basis to proceed with the estimating effort, clarifying requirements and responsibilities.