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Elements and Performance Criteria

1. Determine that the estimate is well documented
   • Check that cost estimation documentation identifies data sources and justifies any assumptions
   • Review the documented method used to develop cost estimate and determine whether estimate can be replicated or updated
   • Check that schedule milestones and deliverables are documented and consistent with the cost estimation
2. Determine that the estimate is comprehensive
   • Confirm that the cost estimate is complete and accounts for all possible costs, including indirect costs
   • Review estimate to determine that no cost elements have been omitted or repeated
3. Determine that the estimate is accurate
   • Confirm that estimates are based on the most likely costs
   • Review estimates for errors
   • Check that appropriate escalations factors have been used
   • Review and validate the estimating technique used for each cost element
4. Determine that the estimate is credible
   • Test key cost estimations for sensitivity
   • Perform a risk and uncertainty analysis to determine the level of risk associated with the estimate
   • Cross check the estimate against an independent estimate to determine whether other estimation methods produce similar results

Range Statement

Range is restricted to essential operating conditions and any other variables essential to the work environment. Non-essential conditions may be found in the Companion Volume Implementation Guide.

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Performance Evidence

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria on at least one occasion and include: applying data analysis tools and techniques identifying cause and consequence of potential costing errors identifying errors in calculations identifying risks and risk appropriate control measures reviewing documentation for completeness and accuracy undertaking research and critical analysis using deductive reasoning and evaluation techniques related to information analysis and corroboration.

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Knowledge Evidence

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria and include knowledge of: costing techniques and procedures estimate test procedures and practices key accounting principles relevant to costing organisation evaluation procedures. relevant legislation and organisational policy and procedures.

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