Construction cost estimates are important for a variety of reasons. They provide the basis for construction project budgets and bids and help to ensure that projects are properly completed on time and within budget.
Without a detailed and accurate estimate of construction costs, it is difficult to determine how much a certain project will cost to build and whether or not it is feasible. Many different types of construction estimates can be used to help plan and budget for a project after all, and each has its own advantages and disadvantages.
Here are five of the most important types of construction estimates to consider:
1) Preliminary Cost Estimate
The first step in the estimating process that is typically completed during the early stages of project planning is a preliminary cost estimate, which is often used to assess the feasibility of a project.
This type of estimate is commonly used to estimate the cost of simple projects and is based on a minimal quantity of information. It should be utilised throughout the project lifecycle to ensure that project costs are kept under control.
2) Quantity Cost Estimate
Next, we have the quantity cost estimate, which is regularly quantified in a takeoff. A quantity cost estimate is a clearer estimate that is based on a complete understanding of the project. This type of estimate involves an advanced methodology centred on a more comprehensive set of project drawings and specifications.
3) Bid Cost Estimate
The bid cost estimate is known as the most accurate type of estimate and is based on a complete set of information. As quoted by the contractor, the project’s designs and specifications will be used to create an itemised and thorough summary of the costs associated with the project, which is used to solicit bids from contractors.
4) Control Cost Estimate
A control estimate is a key to monitoring the progress of a project. Its purpose is to provide a realistic assessment of the project’s current cost status and to identify potential cost overruns. The budgeted cost after contracting considers the costs of materials, labour, and overhead.
It comprises three separate estimates: the budget estimate for financing, the budgeted cost after contracting, and the estimated cost to complete the project. Once the necessary information has been gathered, the estimator can quantify the costs associated with each project element.
5) Detailed Estimate
A detailed estimate is a full breakdown of all of the project’s costs. It includes the quantity of work required, the type of materials needed, and the estimated labour costs. This type of estimate is used to keep track of a project’s advancement.
Detailed estimates are usually performed by a contractor who has been awarded a contract or is in the process of bidding on a contract. This can be helpful in terms of setting expectations and making sure that the contractor you hire is able to complete the project as you envision it.
In conclusion, there are several types of estimates that can be used in construction projects. It is paramount to have a clear understanding of these different estimate types that are available so that you can walk through the process with ease.
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