One of the things which make builders succeed in carrying out the right cost estimates for a building that will enable them to purchase quality materials for the job and as well make their proceeds from it.
The construction cost estimates are looked at from different viewpoints depending on the different official requirements of every company. There are many types of cost estimates in a project, but the top classification of cost estimates is derived based on these three functions; design, bid, and control.
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.
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.
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
The bid estimates are usually obtained from a blend of the following tactics:
- Quantity takeoffs
- Construction Procedures
- Sub-contractors quotations
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. The facility can be classified into diverse levels based on the type of cost estimate that is to be designed.