Business Pitch Dictionary by pitch.dog
Procurement evaluation & award · Working

Should-cost model

Also called: should cost

ELI5

An independent estimate of what a product or service ought reasonably to cost.

Used in conversation

“Procurement needs the basis for should-cost model before suppliers price the work.”

Pitch context

You will see “Should-cost model” in operating plans, procurement packs, supplier reviews and supply-chain reports when the discussion reaches procurement evaluation & award.

Why it matters: In procurement evaluation & award, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 3

Direct term-level sources and supporting source families.