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WHAT IS CONSTRUCTION COST ESTIMATING?

Updated: Aug 17, 2022

The process to predict how much it will cost to build a structure is called Constrution Cost Estimation. The viability, scope, and required financial allocations of a project are all determined by project owners using construction cost estimating. The contractor won't lose money, and the client won't overpay, thanks to good assessment techniques for building.


WHY IS ESTIMATING IMPORTANT AT OWNER's LEVEL?


The cost of the project will almost never match the initial construction cost estimates. This does not, take away the value of a thoroughly building an estimate.


A properly planned and compiled estimate helps in:


  • In assessing the viability and suitability of a project.

  • The capacity of the builder to judge a project's likelihood of success.

  • In planning project's financing needs.

  • The cost of the project may be favourably or negatively impacted by the project team's capacity to make critical decisions regarding the design or materials.


WHAT ARE THE BENEFITS OF COST ESTIMATING IN CONSTRUCTION?


Cost estimation provides the foundation for the planning of a job schedule. The accuracy of an estimate determines whether a job meets its objectives or not. Some of the benefits in cost estimation include:


The cornerstone for compiling a project planning is cost estimation. Whether a job achieves its goals or not, is determined on how accurately an estimate was compiled. Benefits of constrution cost estimation include some of the following:

  • Planning & Scheduling: Planning the necessary sub-activties to correctly finish an activity is made possible by accurate cost assessments. You may more effectively create a work breakdown structure and make sure your project team follows the project schedules.

  • Improved Profit Margins: It is impossible to complete the project on time and within budget due to poor preparation and unforeseen circumstances. However, accurate estimation enables one to take into account both anticipated and unforeseen costs, safeguarding profit margins.

  • Resource Planning: Knowing the responsibilities and deadlines ahead can help you make sure you have the resources you need.

  • Better Project Management: Initial planning helps a the team complete the projects on time and within budget. This develops better relationships among, client, consultants, and wins the builder repeat business.

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