If you want to learn about different types of construction estimates then this article is all you need to read! Typically, before the project is taken up, a cost estimate is prepared to predict the overall project expense. It is prepared either in a comprehensive form by writing about item-by-item description or a rough estimate that does not include small details.
However, every construction project is different and unique from the other. That is why contractors need to tackle every unique challenge with strategies and different estimate types. With the constant change in material and labour costs, it is a very hectic and challenging task to calculate future rework or delay costs. But, you can handle it by relying on any efficient Construction Estimating Company like Bidding Estimate. Their cost experts have the ability to process estimation in different forms at various stages throughout a project’s lifecycle.
Let’s have deep insights into the different types of construction estimates:
Various Types of Construction Estimates
1. Conceptual Estimates
In the planning phase of the construction project, the main concern of contractors is to create a transparent estimate for the whole project. However, the conceptual estimate is the first step that affects project funding, budget planning, and design development.
Before delving into the detailed estimates, a conceptual evaluation is performed to have a rough idea of the overall cost. These types of construction estimates are best for setting initial construction budgets.
2. Detailed Estimates
After the conceptual phase, detailed estimates are created that are more refined and consist of detailed financial projections. The best thing about this type is that the contractor can have detailed information on materials, labour, and equipment. So, it helps to create a strong foundation for the project’s success!
But, what is the role of the construction cost estimator in generating detailed estimates? They use advanced estimating software that has access to similar past projects that help to predict current estimates. Do you know detailed estimates start with broad approximations? These estimates become more enhanced and accurate as the project progresses.
3. Quantity Estimates
This type of construction estimate helps to calculate the right amount of materials and labour required for the project. The cost experts quantify the materials with the help of project drawings and specifications. In this competitive and fast-growing construction industry, estimators use advanced software. With the help of accurate takeoffs, they get a detailed list of every construction material.
4. Bid Estimates
Bid estimates come after the takeoffs, conceptual, and quantity estimates. Contractors need to decide on how much to bid to their clients. In this phase, they will consider all types of costs, direct and indirect expenses. Including overhead, labor, insurance and bonding, permits, site cleaning, profit, and contingency. After the precise cost calculation, estimators adjust the cost estimate based on the project-allocated funds.
5. Plinth Area Cost Estimate
The plinth area cost estimate is created according to the plinth area of the building. It is the total covered area measured at the floor level that includes the thickness of the outer walls. If the building has multiple stories then every floor plinth area will be separately calculated.
This type of construction estimate is calculated by multiplying the plinth area of the building by the plinth area rate. Let’s say we want a 100 sq.m plinth area estimate and the area rate of a building is 3000 per sq.m then the plinth area estimate is 100 X 3000 = 300000.
6. Cube Rate Cost Estimate
Another type of construction estimate is a cube rate cost estimate which is calculated by multiplying the plinth area by the height of the building. However, the building height must be determined by the floor level to the top roof level.
This approach of estimation is more correct than the plinth place method. The price in keeping with cubic meters is taken into consideration based on the fees of comparable forms of homes located in that place. However, the foundation, plinth, and parapet above the roof stage are not considered in this sort of estimate.
8. Approximate Quantity Method Cost Estimate
The approximate quantity method cost estimate includes the measuring of the total wall length of the building. This length is measured to get the overall building cost by multiplying by the rate per running meter which gives the cost of the building.
When determining the rate per running meter for a foundation, the cost of excavation and brickwork up to the plinth are considered. On the other hand, superstructure quantities such as wall masonry, woodworking, floor finishing, etc. are taken into account when determining the rate per running meter.
Final Words!
To sum it up, you have now determined different types of construction estimates, from broad approximations to detailed sets, and how accuracy improves as projects progress! But, if you are a new contractor working in a competitive US construction industry, you need professional assistance. The cost experts know which type to choose based on the project requirements. Bidding Estimate is one of the most experienced and professional companies in the industry. You can contact them to get reliable and accurate construction estimates!