A basis of estimate (BOE) is a document that outlines the methodology and assumptions used to create an estimate for a project. It is typically used to provide a detailed explanation of how the estimate was developed, and to provide transparency and accountability for the estimate.

The BOE should include a description of the work that is being estimated, as well as the assumptions and constraints that were considered in developing the estimate. This may include information about the resources that will be required, the schedule for the work, and any other factors that could impact the cost or duration of the project.

In addition to providing a detailed explanation of the estimate, the BOE may also include supporting documentation, such as cost estimates for materials or labor, or references to industry standards or best practices that were used to develop the estimate.

The BOE is an important tool for managing projects, as it helps to ensure that the estimate is accurate and transparent. It is also useful for stakeholders, as it provides them with a clear understanding of the assumptions and constraints that were considered in developing the estimate, and helps to build confidence in the accuracy of the estimate. The following are examples of basis of estimate content.

Assumptions & Constraints

Any assumptions and constraints that were required to generate a set of estimates. This isn’t a repeat of project assumptions but applies to the estimates themselves. For example, assumptions that were made to generate a list of comparable projects for estimate benchmarks.

Attachments

Identify the version of requirements, risk registers and other project artifacts that are the basis of the estimate. Attach any source documents such as price quotes from suppliers.

Estimate Summary

A high level summary designed to communicate the estimate to all stakeholders such that it can be easily understood.

Procedure

A description of the estimation procedure. For example, describing a bottom-up estimation process of identifying tasks and having subject matter experts estimate each. Include details of calculations or algorithms.

Guidelines

Principles that are used to guide estimates. For example, a principle of using three point estimates to estimate complex tasks.

Bottom-up Estimates

If bottom-up estimates are used the details are included at the level at which estimates were produced, typically the task level.

Parametric Estimates

The details of any calculations or algorithms that were used to generate estimates. Algorithms are sufficiently explained in plain language such that they aren’t a mystery.

Analogous Estimates

Any comparisons that were used to generate or validate estimates based on your historical projects. The details of the historical projects used are listed.

Reference Class Forecasting

Any benchmarks that were used to generate or validate estimates using a database of similar programs, projects and initiatives. The details of relevant database entries are listed.

Third Party Estimates

Details of price quotations and other estimates provided by third parties.

Contingency

Details of contingency added to an estimate to account for risk. Potentially includes confidence intervals for estimates.

Analysis

Details of any analysis related to the estimates.

Validations

Details of sanity checks and validations that were performed. For example, a bottom-up estimate technique that is validated with reference class forecasting.

Approvals

An audit trail of approvals for the estimate.

A stakeholder is anyone or any group that is impacted by a project. This includes individuals or teams who are accountable for or responsible for certain aspects of the project, as well as stakeholders who are simply consulted or kept informed about the project. The following are a few common types of stakeholders:

Project Sponsor

The persons accountable and responsible for representing the sponsoring business.

Customer or Client

Representatives from the sponsoring business who have a stake or role in the project such as providing requirements.

Program Management

A project may fall under a program or impact programs.

Project Management

Managers of the project or projects that are related or impacted.

Business Analysts

Business analysts deliver artifacts such as the project’s business case or requirements.

Project Team

Generally defined as anyone who contributes work to the project.

Project Management Office

An organization’s Project Management Office may have interest in project in order to monitor a project portfolio or maintain project management standards.

Project Management Board

Project governance bodies such as a Project Management Board.

Executive Team

Generally a project wants to garner as much executive attention as possible in order to create visibility that helps to clear issues and recognize project successes.

Functional Managers

Managers who are impacted by business change driven by a project or who have resources committed to the project.

Architects & Designers

Members of the project team who are responsible for delivering aspects of the project’s architecture and design.

Internal Stakeholders

A term for stakeholders who work for the client organization.

External Stakeholders

External stakeholders include anyone involved in a project who doesn’t work for the client organization such as contractors, vendors, partners and suppliers.

End Customers

The customers of the project’s sponsoring business unit.

Local Communities

In many cases, members of the local community have stake in a project. For example, the neighbors of a large construction site may be impacted and compensated for disruption to their use or enjoyment of their property. In such cases, they may be informed of project schedule updates.

Regulators

Some projects attract the interest of government agencies who become stakeholders. In many cases, government approvals are a project dependency.

An RFP (request for proposal) is a document that asks suppliers to provide a detailed proposal for a supply contract. This could include materials, parts, components, services, and outsourcing partners. When issuing an RFP, it is often because the company wants to consider more than just price in awarding the contract. For example, a technology project might also consider factors such as technical capabilities, reputation, and the vendor’s ability to deliver. The following is a template that can be used as a starting point for an RFP bid.

Purpose

Describe what you want and why.

Background

Provide the context for the request.

Scope of Work

A list of requirements. This may include functional requirements and non-functional requirements. These may be presented in a variety of formats such as user stories or specifications. Each requirement is designed to be atomic, correct, verifiable, unambiguous, complete and consistent.

Performance Standards

State your expectations for supplier performance and how performance will be monitored and controlled.

Deliverables

State what the supplier will deliver.

Deliverable Quality

A list of acceptance criteria for deliverables.

Commercial Terms

State the proposed legal terms of the contract.

Payments, Incentives & Penalties

Give details of how payments, incentives and penalties will be assessed and paid.

RFP Requirements

A specification of what RFP responses must include. For example, it is common to request that suppliers describe in detail how they will achieve each requirement in the statement of work. Other requirements may include a detailed price quotation, company profile, references and elements of a solution design and a solution architecture. RFP requirements may link to other templates that must be filled out and attached to responses such as a template for software architecture.

Award Process

Describe how RFP responses will be evaluated and the contract awarded.

Schedule

Define a schedule including deadlines for anything you expect from suppliers.

Contacts

A list of contacts for the RFP process.

A management level is a layer of accountability and responsibility in an organization. It is common for organizations to have up to three management levels. The levels are typically referred to as top-level management, middle-level management, and lower-level management.

1. Top-level management: Top-level management, also known as strategic-level management or senior management, refers to the highest level of management in an organization. This level includes the chief executive officer (CEO), the chief financial officer (CFO), and other top executives. Top-level management is responsible for setting the overall strategy and direction of the organization and making high-level decisions.
2. Middle-level management: Middle-level management, also known as operational-level management, refers to the level of management that is responsible for implementing the strategies and plans developed by top-level management. This level includes managers who are responsible for overseeing the day-to-day operations of the organization and making decisions that impact the immediate work environment.
3. Lower-level management: Lower-level management, also known as front-line management, refers to the level of management that is responsible for supervising and coordinating the work of front-line employees. This level includes supervisors, team leaders, and other managers who are responsible for overseeing the work of individual employees and ensuring that tasks are completed efficiently and effectively.

A strategic partnership is a relationship between two or more organizations that is characterized by mutual cooperation and the sharing of resources in order to achieve common goals and objectives. Strategic partnerships are often formed in order to achieve competitive advantage, gain access to new markets or technologies, or share risk and cost.

There are several key factors that are important to consider when establishing a strategic partnership. These include:

1. Alignment of goals and values: It is important that the goals and values of the partnering organizations are aligned in order to ensure that the partnership is successful. This may involve identifying shared goals and objectives, as well as identifying areas of potential collaboration and cooperation.
2. Synergies: Strategic partnerships can be successful when the partnering organizations have complementary strengths and resources that can be leveraged to create value. For example, if one organization has strong marketing capabilities and another has a strong product development team, the two organizations may be able to work together to create innovative new products and bring them to market more effectively.
3. Communication and transparency: Effective communication and transparency are critical to the success of a strategic partnership. It is important for the partnering organizations to be open and transparent with each other and to establish clear lines of communication in order to ensure that the partnership is effective.
4. Governance: It is important to establish clear governance structures and processes in order to ensure that the strategic partnership is effective. This may involve establishing committees or other decision-making bodies, as well as defining roles and responsibilities within the partnership.

Overall, strategic partnerships can be an effective way for organizations to achieve common goals and objectives and create value. By considering these key factors and establishing strong governance structures and processes, organizations can ensure that their strategic partnerships are successful. The following are common types of strategic partnership.

Research & Development

Join programs of innovation and product development. For example, solar companies that invest in a development project for more durable solar cells that can be used as roads.

Design

Design partnerships such as a small design firm that partners with a large established manufacturer on a line of shoe designs. This gives the small firm access to efficient manufacturing and extensive marketing capabilities. The large firm benefits from fresh designs from a growing firm that has demonstrated its ability to design for certain target markets.

Supply

Suppliers such as a strategic supply of a material that is in high demand such that shortages are likely.

Outsourcing

Outsourcing non-core business activities in order to focus on areas of competitive advantage. For example, a real estate company that outsources its information technology functions.

Supply Chain

Supply chain partners such as a web based company that develops partners with supermarkets and convenience stores to act as pickup points for packages.

Distribution

Distribution agreements such as a retailer that agrees to sell your products in its stores.

Value Added Resellers

A partner that adds services or additional product features to your offerings before reselling them. For example, a partner that sells your software product as a service.

Promotion

Promotional partners such as a beverage company that partners with a summer music festival to promote its brand.

Branding

Brand partnerships such as a cobranded product.

Projects

Funding a shared program or project. For example, a partnership of IT firms that funds a new internet backbone that benefits both companies.

Sustainability

A commercial entity that partners with a non-profit to improve communities or the environment. For example, a fast food restaurant that funds an ocean plastic clean up initiative.