The cost estimation for a project is a whole process of forecasting the average cost for the fulfilment of due to the project objectives towards the recommended workmanships that are covered by features of different items of work.
For a particular project that is fully described by drawings, specifications, estimation of quantity for the take off for different machines, the final rate and average costing, etc.
The construction cost estimations are known as the forecast of the cost required for a construction project. The estimated cost for a project is the very first step for the proper management of any single project.
In any activity of construction, there are two basic things involved, the aspect of quantity and the aspect of quality.
The aspect of quantity is monitored by the study and analysis of the drawings that are prepared with the help of the design of any particular project. This aspect also covers the quantum of work that is involved in the estimation of materials and labours (that are required to perform the construction task).
The aspect of quality helps us to cover the quantum of the work that is involved in the estimation of materials and labours, needed for construction.
The quality aspect is monitored by the specifications of the materials used during the project and the workmanship as well.
Both of these aspects help us to estimate the cost for work or for a complete project. The estimate is thus defined as a tool that is used for the planning and the controlling of construction activities of any project with respect to quality, quantity, the time, and average costs.
Detailed Construction Cost Estimate:
The construction cost estimate is largely divided into two different categories. The first one is the detailed one and the second is known as approximate or the preliminary one.
All the estimates are more or less approximate as they vary name is implied. The actual cost for construction is only known when the work is completed in all the respects and all costs are allocated.
Detailed Construction Cost Estimation:
The detailed construction cost estimates are prepared on the basis of detailed drawings that are further processed by specifications in different norms and measurement of various items used for several types of work tasks.
A detailed cost estimation provides a realistic amount of the final cost that is needed in the complete process.
The detailed cost estimation is composed of the following:
- The direct cost of various items of work
- Provision for contingencies
- Direct Supervision charges
- Unknown costs such as the services charges
Preliminary Construction Cost Estimates
It is an abstract estimate that is referred before a detailed estimate due to the reasons mentioned below:
- To maintain the rough idea of the cost as part of a preliminary study for the feasibility.
- To rank the competing projects for the allocation of funds.
- To make advance arrangements for the public utility projects
- To fix the issues for insurance against risks etcetera.