W5_A_Benchmark Of Cost Estimate Process refer to Humphreys Association

1.Problem Definition

On this blog posting the author will demonstrate the process of estimation stages by referring to the Estimating Process in Humphreys Association, Project Management Using Earned Value by comparing the current estimation process in the Company authors and how closely the process is carried out according to the general guidelines.

2.Develop the Feasible Alternative

On this occasion a checklist of estimation stages will be performed at the company following the estimation phases that have been prepared by Humphreys Association, Project Management Using Earned Value and find strengths and weaknesses at each stage of the process.

3.Development of The Outcome for Alternative

Humphreys Association, Project Management Using Earned Value provides 15 step of estimating process as shown on following figure-1. We will do a step by step check list with our current process.

Figure-1 Humphreys Association The Estimating Process

4.Selection Criteria

We will perform a checklist of each stage proposed by Humphreys Association in the estimation process. If it finds some difference and has the potential to improve and improve the procedure of the feeding estimation process it will greatly help improve the quality of the project estimation process.

5.Analysis and Comparison of the Alternatives.

Based on check list assessment, below are the summary shown on Tabel-1

Table. 1. Checklist Comparison Result

Based on the stages of the approach made by the Humphreys Association can be seen that not all steps are done by the company, where from 15 steps there are 5 stages that are not implemented, namely Estimate Indirect Cost, Material and Equipment Escalation, Calculate Escalation on Indirect, Calculate Escalation on Indirect, risk assessment, Develop recommended cost risk allowance and 1 stages that sometimes implemented sometimes not the Contracting Strategy.

6.Selection of the Preferred Alternative

Based on above assessment and analysis, company must consider unimplemented step, because factually 80 % project running with over budget and behind schedule. But to improve the process that does not rule out the use of other references in addition.

7.Performance Monitoring and The Post Evaluation of Result

Management should consider the use of Humphrey Associations standards as part of the estimation stage process to avoid a Over Budget and Behind Schedule Project, and does not rule out the possibility to implement other standards such as United State Government Accountability Office (GAO) and AACEI Recommended Practice in the checklist comparison.


  1. Humphreys, C, G (2014), Project Management Using Earned Value 3rdEdition, Chapter 21, Estimating Development, pp.411-416
  2. Yushadi, Edi (2015), w18_ey_cost estimating process selection. Retrieved from : https://garudaaace2015.wordpress.com/2015/07/10/w18_ey_cost-estimating-process-selection/
  3. Hollman, John K. (2003), AACE International Recommended Practice No. 19R-97 Estimating Preparation Cost – As Applied for Process Industries.
  4. Permana, Arif (2013), W16_APE_Comparison Cost Estimate Process, Retrieved From:  https://simatupangaace2014.wordpress.com/2013/11/12/w16_ape_comparison-cost-estimate-process/
  5. Yushadi, Edi (2015), W9_EY_Estimating Process Benchmark. Retrieved from https://garudaaace2015.wordpress.com/2015/04/23/w9_ey_estimating-process-benchmark/

1 thought on “W5_A_Benchmark Of Cost Estimate Process refer to Humphreys Association”

  1. AWESOME job, Pak Ardi, PERFECT case study and you set it up correctly. The only “weakness” in the Humphrey approach is that what he is describing is more of a “bottom up” estimate rather than top down.

    What would be really great (and I highly recommend you consider dong it) is to look at the GAO’s Best Practices in Capital Budgeting process map, http://www.gao.gov/new.items/d093sp.pdf see Figure 1 on page 8 and the description or explanation in GPC Module 8 and the Process Map shown in the US Dept of Energy Cost Estimating Guide https://www.directives.doe.gov/directives-documents/400-series/0413.3-EGuide-21/view

    Use all three as the “Feasible Alternatives” and then analyze which of the three approaches is “best” or “better” for your organization and then make your recommendations.

    To see an example of what you can do with this, go see what Musallam Al Awaid produced for his paper- http://pmworldjournal.net/article/oman-oil-and-gas-cost-estimating-vs-the-gaos-best-practices-in-capital-budgeting-a-benchmarking-study/

    This is where I hope you will take this eventually..

    Dr. PDG, Jakarta


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