Establish the project tax basis
Record the project location, contracting arrangement, owner status, and tax assumptions supplied by the contractor. Use current guidance from the relevant authority or qualified adviser.
Do not transfer a rule from another project merely because the work looks similar. Use the construction basis of estimate guide as the related control and keep the record with the estimate revision under review.
Check each cost source consistently
Review material, rentals, consumables, freight, subcontractor proposals, fabricated items, and owner-furnished purchases. Mark whether supplier and subcontractor quotes include tax. Separate tax already included from tax added in the estimate so it is not counted twice.
AACE recommended practices offer general estimating references. The project documents, contractor procedures, and approved estimate remain the controlling basis for the decision.
| Review field | Required record |
|---|---|
| Basis | Location, contract, and owner status |
| Cost line | Taxable treatment and source |
| Quote | Included, excluded, or unclear |
| Exception | Owner and approved treatment |
Document exceptions before approval
List exemptions, resale treatment, uncertain classifications, and pending certificates. Name the reviewer who can resolve them and show the temporary estimate treatment.
Preserve the answer with the estimate basis because the same percentage can apply differently across cost lines. Use the estimate review checklist as the related control and keep the record with the estimate revision under review.
