Costs estimates are to be prepared as though the Government were a prudent and well equipped contractor estimating the project. Therefore, the total construction costs, which a prudent, experienced contractor would expect to incur, are to be included in the cost estimate. This philosophy prevails throughout the entire project cycle — from programming through completion of construction.

This document establishes uniform guidance to describe methods, procedures, and formats for the preparation of cost estimates and associated analyses (price/cost). This guidance applies where services have common requirements, however, for instances where there are differences, use the policies and procedures of the cognizant design agency. This document addresses the various phases of cost estimating from the initial start of design through modification cost estimates during construction. UFC 3-730-01 – PROGRAMMING COST ESTIMATES FOR MILITARY CONSTRUCTION provides guidance for cost estimating during the initial planning, programming, and budget review phases. The term construction includes remedial action environmental projects, dredging and other construction type work often implemented as service contracts. For the purposes of this document, the term cost engineer applies to qualified individuals, whether employed by the Government or under contract to the Government, who are routinely engaged in the preparation or review of cost estimates.