EA05: Cost Basis & Economic Screening Worksheet

You are not producing contractor pricing. You are producing cost ranges credible enough that the relationship between savings and investment is visible to someone deciding whether to underwrite the scope. Covers what is expected on cost basis — range rather than point estimate, source named per measure, scope boundary stated, contingency disclosed, exclusions explicit — with the note that the most common discrepancy between an audit cost and a contractor bid is a scope boundary, not a price. Then the SIR calculation run at the high end of cost and the conservative end of savings, a worked example, and the weighted average useful life term screen with its own worked calculation. Run the term screen before you propose a package; it is cheaper to re-cut at your desk than after a term sheet.