Common use of Basis for Estimate Clause in Contracts

Basis for Estimate. The Basis for Estimate is a statement explaining the methods used to compute estimated costs and time associated with a contract change. A Basis for Estimate could be but is not limited to: • Review of historical bid prices. • Review of area and/or regional averages. • Review of recent winning bids on a Department contract. • Overrun at a unit price included in the original contract. • The documented actual costs of the Contractor. • Using the resource approach, a detailed estimate of the quantities and unit costs of the manpower, material and equipment resources required.