should-cost estimate definition

should-cost estimate

Approximation of a contract-price, developed by the customer's accounting, engineering, procurement, and other costing staff. The staff conducts a thorough, in-depth review of the contractor's plan to identify and eliminate inefficiencies and diseconomies, and quantifies their effect on the total cost of the project. The resulting cost figure is the should-cost estimate.

This content can be found on the following page:

http://www.businessdictionary.com/definition/should-cost-estimate.html