Why is cost estimate verification necessary before project approval?

Đăng bởi Admin vào lúc 09:59 - 02/01/2026

This article explains why cost estimate verification is necessary, outlines risks if skipped, identifies key verification items, and clarifies the best time to perform verification before project approval.

Construction cost estimate verification is a critical control step that helps investors optimize costs and ensure legal compliance before project approval. So, when to perform cost estimate verification, and is it okay not to conduct cost estimate verification? Let’s explore this with Bach Khoa in the article below!

1. Key reasons why cost estimate verification is essential for construction projects

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Cost estimate verification is the activity of inspecting and reviewing the accuracy of applying norms, unit prices, types of materials, and work volumes based on design documents. Therefore, it is necessary to conduct verification to:

Ensure Accuracy and Transparency: The work of cost estimate verification helps eliminate arithmetic errors, typing mistakes, or duplicate volume calculations. This ensures the estimated value accurately reflects the scale and nature of the project.
Save Investment Costs: In reality, through verification, investors often discover unreasonable expenses or the application of norms that are too high compared to reality, thereby significantly reducing the budget while still maintaining quality.
Comply with Legal Regulations: For projects using public investment capital or non-public state capital, verification is a mandatory step according to the Decree on construction investment cost management.
Serve as a Basis for Determining Package Prices: Accurate verification results help investors confidently set ceiling prices in bidding, avoiding price inflation or bidding failure due to underestimated costs.

*Cost estimate verification helps control construction project costs*

2. Is it okay not to conduct cost estimate verification?

Many private investors often wonder: Is it okay not to conduct cost estimate verification? Below are the severe financial and legal consequences you may face if you skip this step:

Loss of Investment Capital: Discrepancies in volume between the design and the actual calculation sheet, if not verified, will inflate the budget wastefully.
Prolonged Disputes During Construction: Without an initial agreement on unit prices and volumes, investors and contractors are prone to conflicts during inspection and payment.
Violation of Legal Regulations: Any errors in norms that cause budget loss can lead to criminal liability or civil compensation.
Project Progress Stagnation: A project may be halted midway due to a lack of funds (if the estimate was too low) or the inability to approve subsequent steps because of incomplete verification dossiers.
Material Quality Risks: When the estimate is not strictly controlled, contractors may exploit loopholes to use inferior materials compared to the approved unit prices.

*Cost estimate verification ensures the accuracy of construction documents*

3. Items requiring thorough cost estimate verification

To ensure the most accurate results, it is necessary to focus closely on the following items requiring thorough cost estimate verification:

Volume Inspection: This is the most time-consuming part. It requires a meticulous comparison between technical design drawings and volume calculation tables. Areas like reinforcement, concrete, and earthwork are most prone to errors and need strict verification.
Application of Unit Prices for Materials, Labor, and Machinery: Unit prices must match local price notices at the time of formulation and align with market prices for specialized materials.
Application of Technical Norms: Applying the wrong norm codes (e.g., from manual to machine-based or vice versa) can change the project value by billions of VND.
General Cost Ratios and Estimated Profit: Ensure these ratios comply with the project type and grade according to current circulars from the Ministry of Construction.

*Cost estimate verification before determining construction package prices*

4. When to perform cost estimate verification?

Identifying the right time for when to perform cost estimate verification helps the project management process run smoothly and scientifically. You should conduct verification when:

After completing the construction drawing design: This is when the documentation is most detailed for the verification unit to review the entire volume.
Before submitting for appraisal at state management agencies: Investors should perform an independent verification first to ensure a "clean" and accurate dossier.
Before making the decision to approve the estimate: The verification report is the final legal basis for the investor to sign off on the project budget.
When the project has major design changes: Any adjustments in scale or construction methods require supplementary verification to update the new value.
When material prices fluctuate drastically: If market fluctuations exceed the contingency fee, a re-verification is needed to adjust the total investment.

*Cost estimate verification helps optimize construction investment budgets*

5. Bach Khoa – A reputable, cost-effective cost estimate verification unit

In a competitive market, finding a professional cost estimate verification unit is vital. Bach Khoa is proud to be a leading provider with a team of experienced construction economists who deeply understand the current legal system.

*Cost estimate verification for transparent construction records with Bach Khoa*

By choosing the cost estimate verification service at Bach Khoa, clients receive:

Absolute accuracy in reviewing volumes and unit prices.
A scientific workflow with clear and transparent verification reports.
Consultation on cost-optimization solutions that still ensure technical integrity.
Competitive service costs and fast execution times to ensure project approval progress.

At Bach Khoa, every verification dossier is not just a technical task but a commitment to responsibility and professional ethics, helping investors feel completely secure about their project's financial plan.

Cost estimate verification is an indispensable link in construction investment management. It helps eliminate risks, optimize costs, and ensure legal validity for every project. Investing in a quality verification service is always a smart move for professional investors.