Cost Estimation Importance for Different Construction Projects

Cost estimation plays a significant role in construction project management. The principle object of cost estimation is to develop the bottom line of the project in various development stages of the project.

The construction cost estimator is prepares with the help of construction cost calculator or cost application for the cost from the existing data for the individual at a certain stage of the project. Two variety of cost are such as initial capital cost and maintenance, operation cost are related to relate with the erected building.

These cost categories comprise of numerous cost elements.

Characteristic parts of cost: The capital cost for a production venture used for all the expenses related with the basic establishment as given below:-

• Designing of engineering and architectural.
• Supervision of Field.
• Insurance and taxes for the period of construction.
• Study of Planning and viability.
• Inspection, assessment and testing
• Land acquirement and improvement.

The Operation and maintenance cost bears the following expenses:

• Construction contains building materials, labors and equipment.
• Repair and Maintenance.
• Periodic renewal and renovation.
• If required, Land rental fee.
• Funding costs.
• Other expenses of the owner.

The huge ranges of price components are fully depend on the natural environment, volume and position of the project along with the executive association. To minimize the expenses the owner should employ a construction cost estimator.

Division of Construction Cost Estimates:

Usually , the construction cost is divided in three different categories:-

a) Design estimates,

b) Control estimates and

c) Bid estimates.

Design Estimates: The process of developing the designs throughout the planning phases and design of the project is dependent on the design estimate. This estimate are Preliminary or conceptual estimates, Comprehensive or definitive estimates, Screening estimates and Estimates based on plans and stipulations.

Bid Estimates: A control estimate is the system used for both supervisor and owner of the project to manage efficiently the cost flow throughout construction. A control estimate is the output of the accessible information to arrange Budget estimate which is useful for financing and calculation cost for finishing the project.

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