1. Review eligibility of work included in the estimate or bid schedule of values.

2. Perform cost validation to determine reasonableness.

• Check 6-10 of the largest cost items using local average weighted unit cost or industry standard unit cost data, these items representing at least 25% of the MasterFormat Divisions included in the estimate
• Check 25% of remaining cost items, which should include systems or components representing an additional 25% of the eligible scope of work

The items checked should be within 10% of the local average weighted unit costs or industry standard unit cost data.

• If they are, use the Architect and Engineering estimates of the construction bid schedule of values as part of the project estimate
• If not:
• Check to see if the applicant provided costs are based on bid values; they may include general contractor costs
• Check to see if the separately listed items may need to be combined to accurately validate the cost
• If the costs cannot be brought within 10%, then develop a new independent estimate for eligible work”

3. Confirm procurement method.