Understanding cost estimation for construction, Building Design Tips, Online Advice

Understanding Cost Estimation For Construction

5 May 2021

Understanding Cost Estimation For Construction

Cost estimation is one of the elements that project owners should focus on. It helps how to allocate time and budget for a potential plan. This will show whether the particular project is feasible or not.

Many risks are involved in completing a project, including losing money while failing to complete the project. Therefore, understanding the cost beforehand is necessary to prevent overpaying and other financial impacts for the client and builders.

Cost estimation is highly beneficial, however, figuring out the right amount can be crucial. Some prefer using software to get estimations but hiring a skilled estimator could provide more accurate values.

The following details are the major categories of the construction estimating process that you should know.

Three Categories of Construction Cost Estimates

  1. Design Estimates

The design estimate is composed of four phases to determine your overall project expenditures.

First is the pre-design phase wherein the type of construction for the project is identified. It is also called a screening estimate.

The preliminary or conceptual estimate, on the other hand, is based on the schematic design of the project.

Next is the cost estimation based on the design development. And lastly is the engineer’s estimate to deliver the most accurate project cost to meet your basic requirements.

  1. Bid Estimates

Contractors are responsible for determining bid estimates for the client. They do extensive research just to give clients the most accurate bid estimate. This considers many factors like supervision costs, direct expenses, and others.

Quantity takeoffs are among the vital components to finalize a detailed estimate for a project. It can be complex to measure quantity takeoffs with many factors to consider that only experts can.

  1. Control Estimates 

A contractor agreement must be signed off to secure a control estimate. This category assures the contractor to have control of the project’s cost. It also protects them from future expenses upon construction.

Why Project Owners Should Understand Cost Estimation?

Cost estimation involves not only labor cost but also all the materials used to complete a project. Professionals will do the job however when things are also clear with the clients, the project will run smoothly.

Accurate estimation is also important to better protect the overall budget up to finishing the plan. It best applies to mega-projects are that require substantial costs to see results. It is critical and yet benefits the next step both the builders and clients will have to face.

Furthermore, there are cost estimation tools making things work faster and also accurate for any projects.

Final Thoughts

Wrapping it all up, cost estimation for a building project is truly complex that demands both skills and knowledge. Hiring the best estimator can help to better assess your expenses in completing a project plan. It will benefit no other than the clients and builders in the long run to avoid unwanted costs. The first thing clients need to understand is the three major categories of cost estimates, and then they can proceed to actual cost estimation.

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