# Basis of Estimate (BOE) Template > Source: https://netray.co/tools/basis-of-estimate-document-template > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: Free Tools ## Short answer Fill in the fields to produce a structured basis of estimate document that explains how a price was built. ## Category cost-finance ## Industry Aerospace & Defense ## Audience - Estimator - Proposal manager - Program manager ## Tool **Kind:** template **Output:** document **Fields:** #### Company name **Key:** company **Type:** text **Default:** Acme Precision Ltd #### Customer **Key:** customer **Type:** text **Default:** Northfield Systems #### RFQ or proposal number **Key:** rfq_no **Type:** text **Default:** RFQ-24817 #### Item or work package **Key:** item **Type:** text **Default:** Housing assembly, PN-48213 Rev C #### Quantity **Key:** qty **Type:** text **Default:** 250 units, delivered in 5 lots of 50 #### Estimator **Key:** estimator **Type:** text **Default:** J. Moreno #### Date **Key:** date **Type:** date **Default:** 2026-10-20 #### Material basis **Key:** material_basis **Type:** textarea **Default:** Aluminum 6061-T6 bar from current supplier quote dated 2026-10-12, 8 percent allowance for cut waste and scrap. #### Labor and machine basis **Key:** labor_basis **Type:** textarea **Default:** Routing times from similar part PN-47110 adjusted for added features. Setup spread over 50-unit lots. Machine and labor rates from the 2026 rate table. #### Assumptions **Key:** assumptions **Type:** textarea **Default:** Drawing Rev C is final. Customer provides test fixtures. No change to quantity by more than 10 percent. #### Exclusions **Key:** exclusions **Type:** textarea **Default:** Qualification testing, export licenses and freight beyond the plant gate. #### Key risks **Key:** risk **Type:** textarea **Default:** Thin wall feature may require extra fixturing. Anodize lead time depends on supplier capacity. #### Contingency percent **Key:** contingency **Type:** text **Default:** 5 #### Validity (days) **Key:** validity **Type:** text **Default:** 30 **Blocks:** #### Basis of Estimate **Body:** Company: {{company}} Customer: {{customer}} Reference: {{rfq_no}} Item: {{item}} Quantity: {{qty}} Estimator: {{estimator}} Date: {{date}} #### Material basis **Body:** {{material_basis}} #### Labor and machine basis **Body:** {{labor_basis}} #### Cost summary **Table:** **Columns:** - Element - Basis - Amount **Rows:** **0:** Direct material **1:** See material basis **0:** Direct labor **1:** See labor basis **0:** Machine time **1:** See labor basis **0:** Outside processing **1:** Supplier quote **0:** Tooling and NRE **1:** One-time **0:** Overhead **1:** Current absorption rate **0:** Contingency **1:** {{contingency}} percent of subtotal **0:** Profit or fee **1:** Per pricing policy **0:** Total #### Assumptions **Body:** {{assumptions}} #### Exclusions **Body:** {{exclusions}} #### Risks and mitigation **Body:** {{risk}} This estimate is valid for {{validity}} days from {{date}}. #### Review and approval **Signatures:** - Estimator - Operations review - Finance review - Approval **Notes:** This is a starting point for documenting an estimate, not a substitute for your proposal procedures or the requirements of a specific contract. Government contract proposals may require specific cost formats; check the solicitation. ## Content **Intro:** A basis of estimate explains how a price was built, so that a reviewer or customer can follow the logic and challenge it. This template gives you the structure, and you fill in the facts for each quote. **Sections:** #### How to use the template **Body:** Enter the customer, item and quantity, then describe the material, labor and machine bases in plain terms. Add assumptions, exclusions and risks, and set the contingency and validity. Export the document as PDF or Word, add the dollar amounts in the cost summary table, and attach it to the quote. Keep one copy in the quote file for later comparison with actual cost. **Bullets:** - Fill in the fields at the top - Add amounts to the cost summary table - Export and file with the quote #### What a good basis states **Body:** Each cost element should say where the number came from: a dated supplier quote, a routing for a similar part, a rate table by year, or a historical actual. Reviewers trust estimates that name their sources and flag judgement. Describing the method also makes the estimate repeatable, so another estimator reaches a similar number from the same inputs. #### Assumptions, exclusions and contingency **Body:** Assumptions say what must be true for the price to hold, such as a final drawing revision. Exclusions state what is not included. Contingency covers identified risk and should be tied to named risks rather than added as a flat padding. When a risk is resolved, the contingency should reduce. If the contract has special rules for contingency, follow them. #### Common mistakes **Body:** Vague bases such as based on experience, missing dates on supplier quotes, and assumptions hidden in an email thread cause disputes later. Another mistake is not recording who reviewed the estimate. Use the signature block, and store the document where the contracts team can find it. **Cta:** Netray can help link your estimates to actual job cost in your ERP so each basis of estimate can be tested against what the job really cost. **Faq:** #### What is a basis of estimate? **Answer:** It is a document that explains how an estimate was developed: the sources, methods, assumptions and risks behind each cost element. It lets a reviewer verify the logic without redoing the work, and is common in defense and aerospace proposals. #### How much detail is needed? **Answer:** Enough that another estimator could reproduce the number. Name the source for each element, state the quantity or time used and note any adjustments. More detail is warranted for large or high-risk items. #### How should contingency be set? **Answer:** Tie it to identified risks, estimate the cost impact and likelihood of each, and sum the expected values. Show it as a visible line. A flat percentage is easy but harder to defend and does not reflect risk reduction over time. #### Does this satisfy a government cost proposal? **Answer:** Not by itself. Government solicitations can require specific forms and cost data formats. Use this as the narrative support and follow the solicitation's instructions and your compliance procedures. ## Search terms basis of estimate template, BOE template manufacturing, cost estimate documentation template, proposal basis of estimate, estimate assumptions and exclusions, defense proposal cost narrative, estimating basis document --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json