The Three Main Phases Of Construction Estimates

The basic things in construction estimates

The three main categories of construction cost estimates are; design estimates, bid estimates, and Control estimate. The major types will be explained briefly in this article.

Control Estimates

A control estimate is utilized for observing a project during the phase of construction. The control estimate can be gotten from the following information.

• The budgeted cost: This is attained just after the contracting process and just before the construction phase commences.
• Budget Estimate for financing
• Estimated Cost to Completion: This is obtained during the progress of construction.

Some models have to be implemented by the contractor and the owner for cost control. A budget estimate has to be provided by the owner during the early phase of planning as that aids in long term financing of the facility.

For a contractor, the bid estimate is well thought out as the budget estimate which can be utilized to control the aim as a fragment as a part of construction planning. The budgeted cost needs to be updated from time to time to highlight the projected cost to completion and equally make sure there is enough cash flow to complete the project. Using a construction estimating & management software Australia helps in facilitating this process making sure there are no mistakes or short of funds.

Bid Estimates

The bid estimate is the one which is usually submitted to the owner by the contractor. This bid estimate can either be competitive bidding or bid that has been concluded upon after negotiation. Most companies always use their construction and management software at this stage. This bid includes:

• The construction cost
• General Overheads
• Profit

The bid estimates are usually obtained from a blend of the following tactics:

• Quantity takeoffs
• Construction Procedures
• Sub-contractors quotations

Design Estimates

When it comes to design estimates, there are different types namely:

• Screening Estimates or the order of magnitude estimates
• Preliminary estimates
• Detailed Estimates
• Engineer’s estimates with regards to the plan and specifications

The different design estimates take the progress of the design, planning and possibly the stage of executing the project.

Screening estimate stage

A screening estimate is created before the design of the facility. It depends on the cost data got from the facilities that are constructed in the past.

Preliminary estimate stage

The preliminary estimate is also called the conceptual estimate which is based on the conceptual design of the facility.

Detailed estimate stage

The detailed estimate is referred to as a definite estimate which is established from the evident well-defined scope of work. At this point, the detailed design is studied so that the important features of the facility can be identified.

Engineer estimate stage

An engineer’s estimate is defined depending on the plans and the measurement from bids from the construction contractors such as Commercial Roofing Cincinnati OH. The facility can be classified into diverse levels based on the type of cost estimate that is to be designed.