Cost Estimating Procedure

http://www-ssrl.slac.stanford.edu/lcls/reviews/2007_oct9-12_eir/eir_docs/cam_cost_est_1.1-021-r0.pdf

Basis of Estimate Criteria The following basis of estimate criteria type codes are assigned to the activities in the schedule used to generate the cost estimate. The purpose of these criteria is to determine the source, and thus the quality, of the estimate.

Design Maturity and Judgment Factors Design maturity and judgment factors are also assigned to the activities in the schedule used to generate the cost estimate. These factors further qualify the cost estimate and provide a measure of risk assessment useful for applying a contingency factor to the cost values. The contingency factor is determined by adding the design maturity decimal factor and judgment decimal factor and then converting the result into a percentage. For example:  

Judgment Factors These factors provide the means to apply an additional risk factor based other criteria. These factors can range from 1.0 to 1.1, but can be higher under unusual conditions. The risks identified and applied as a judgment factor should be noted in the estimate file.