The process of determining each cost associated with a construction project is known as construction estimation. Direct costs, indirect costs, overhead charges, and a profit margin for the general contractor are among these expenses.
Construction estimation goal is to produce a construction estimate, which in mostly used by contractors to submit bids for construction projects.
Why is Construction Estimation Important?
The owner of the builder should be fully aware of the scope of work before its execution. He can determine if the work can be finished within the allotted time and budget by paying attention to even the smallest details. Additionally there are many benefits of estimating services.
Cost Estimating also enables him to comprehend the likely costs involved in carrying out the suggested work. In order to estimate the costs of the proposed work from its plans and specifications, it is required to compile a detailed list of the affiliate costs.
Steps of Construction Cost Estimation
Construction estimates are divided into five steps developed by the American Society of Professional Estimators.
- Order of Magnitude
- Schematic
- Preliminary OR Design
- Substantive or Construction
- Bid
As you progress through the steps, the level of detail increases, also increasing the reliability of the cost estimation.
Types of Estimates
There are different types of cost estimates, some of them are defined as follows:
- Preliminary Estimate
- Quantity Estimate
- Supplementary Estimate Annual Maintenance
Preliminary Estimate
This is a preliminary estimate to obtain an approximate cost, allowing the relevant body to assess the financial part of the scheme before giving it approval. Such an estimate is developed after researching the costs of comparable works and drawing on experience in various ways for various kinds of works in preliminary estimate.
Quantity Estimate
This is a comprehensive estimate or quantity of all the materials needed to finish the project at hand. Each item’s amount is calculated based on its corresponding dimensions on the structure’s drawing.
Supplementary Estimate
The development of a project may require certain alterations or additions during the course of the work owing to material structural divergence from the design that was first approved. All such works are included in a supplementary estimate.
The preparation process is the same as for a detailed estimate, and it must be supported by a thorough account of the circumstances constraining its use.
Annual Maintenance
For a project to function properly after completion, it is important to keep the maintenance element in mind. For maintenance purposes, an estimate is created for any components that need to be renewed, replaced, repaired, etc.
On the basis of the constructions importance and construction cost as a percentage, the total expected cost of maintenance is often kept within the allowed ranges. Depending on the age and significance of the structure, this price may change.
Why are construction estimators necessary for making estimates?
The estimates are kept realistic and comprehensive with construction estimating services. The estimations aid in gaining an understanding of costs so that the project may be completed effectively. Cost assessment is essential before work is started because prices frequently exceed planning.
The budgeting process is essential to the success of any project. To stay inside your budget, make sure to use expert estimating company to help you evaluate the expenditures.