Webinar: Estimate Validation and Bias Assessment: Ratio-to-Driver Method

On December 6^th, 17 AACE HI Section members and friends attended at the office of Rider Levett Bucknall to watch a webinar on the topic of “Estimate Validation and Bias Assessment: Ratio-to-Driver Method” by Mr. John K. Hollmann recorded at 2019 AACE International Annual Meeting. Mr. Hollmann presented a method called ratio-to-driver for cost estimate validation which it should start with establishing an explicit cost strategy (planning for bias) in the basis of estimate and estimating requirements documents, and the validation’s purpose is to assure this strategy was achieved. He also discussed how validation provides a bias measure for parametric models of systemic risks. At the last, his study is offered as the basis for a potential AACE recommended practice for estimate validation.