In this article, you will get to know different types of construction estimates and how they are unique for various requirements. Estimating is the major part of the construction process, in which the project’s overall cost is evaluated. The main job is to calculate the amount of materials and their cost to complete the project. To complete this job, clients require various types of estimates based on their project needs.
All types of estimates in construction are important because each has its own set of unique features. All this is for budgeting and securing profitable construction projects. They help the owners and contractors to make the best decisions about financing. Because the only main thing that affects the budget accuracy is how you do the job and how your approach is making it profitable!
IF YOU ARE STUCK WITH LIMITED OPTIONS SO YOU NEED TO REVIEW OUR GUIDE TO DISCOVER DIFFERENT TYPES OF CONSTRUCTION ESTIMATES AND CHOOSE THE SUITABLE ONE FOR YOUR PROJECT!
Overview of Construction Estimates
According to a survey, almost 45% of Construction projects end up generating accurate cost estimates. However, the estimates range from rough values to detailed construction proposals that are used for securing contracts.
Remember, accuracy relies on certainties; this means that you have to be confident enough with your construction estimates. Especially, in your conceptual stage of the construction project, the preliminary construction estimates are the most major things to move on with the project under budget. So, accuracy is the major thing that needs to be accounted for project success.
No, let’s discuss the different types of construction estimates that are being used in the AEC industry.
Different Types of Construction Estimates
1. Detailed Estimates
Detailed estimates include the cost estimation with the breakdown of the overall project requirements and write them into line items in the proposal sheets. You can also call it an accurate estimate because it is used to calculate labour and materials for all project types.
This type of estimate is also part of presenting concepts to win over good projects and attract various investors. For that, you have to write comprehensive information about the project cost.
Detailed estimates include the labour and materials prices, their quantities, the itemized list of the needs, etc. Moreover, it includes:
- Detailed explanations of all rates used in the price calculation.
- Details of the project’s desires.
- Plans depicting the whole work area.
- Building Drawings such as Plan, Elevation, and Section.
2. Preliminary Estimates
Preliminary estimates are prepared in the initial phases of the project when there is limited information about the project. The professionals or estimators prepare preliminary estimates by comparing the rates of similar projects. In addition to that, they use several advanced software to predict the right cost estimates. Hence, the data comes from the completed initiatives from the past completed projects.
The following information is included in the preliminary estimates:
- Site Preparation Costs
- Basic Material Costs
- Labor Costs (Rough Estimate)
- Major Equipment Costs
- Project Scope Overview
- Square Footage or Unit Cost Basis
- General Contingency Allowance
- Permits and Fees (Approximation)
- Utilities and Infrastructure Costs
- Preliminary Design and Engineering Costs
- Environmental Compliance Costs
- Transportation and Logistics
3. Quantity Estimate
Quantity estimates include the quantification of all the construction materials and labour needs for every type of task. However, it consists of the list of the right quantities and the prices of everything that needs to be purchased. With the help of the right quantity estimates, the construction estimators move on with the accurate calculation of the overall project cost.
Are you curious how it is executed? The project costs are evaluated by multiplying the total units (derived in the quantity takeoff process) by the item’s cost.
4. Bid Estimate
Bid estimates are also prepared to secure construction projects. The price which is predicted by the contractors is evaluated based on their experience. This predicted cost is based on the client’s budget and timelines. The professionals choose materials and other important things according to the funds to prevent over-budgeting.
Remember, bid estimates are quite crucial because they demand extensive labor and materials prices which must be accurate. Professional estimating services are developed in a way that the cost predictions are neither under or over-bidding so that the execution goes out smoothly.
CHOOSE THE CONSTRUCTION ESTIMATE ACCORDING TO YOUR PROJECT’S REQUIREMENTS AND ENSURE ACCURATE OUTPUTS TO SECURE PROFITABLE BIDS AND EARN GOOD PROFITS!
Final Thoughts!
To sum it up, all types of construction estimates are special, each having unique features that play a perfect role in project success! But, estimation is all about art and science because without skills you can never achieve accurate cost predictions. Successful estimation requires a sea of information which means you must know all methods of construction estimates. Follow our guide and practice these methods to attract new clients to your company and grow yourself!