Written by Cost estimating is among the most vital disciplines in the field of construction and project management. There is no doubt that proper building cost estimating is not just some sort of financial prediction, but an important backbone to which lies the success of the construction effort harnessed. It is proper conceptualization as a discipline by stakeholders, which also include architects, engineers, contractors, and clients, becomes highly vital.
Building Cost Estimating Defined
Building cost estimating involves the forecasting of the costs of expenditure which will be required in the construction process. An estimate is a pre-determined cost for materials, labor, overheads, and contingencies that is expected in undertaking the project. The capability of carrying out correct estimates lays the foundation for good project planning and proper execution.
It is crucial to realize that building projects are of a complex nature themselves. The final cost can be attributed to the prevailing conditions of the market, the scale of work, and location; thus, an estimator should fathom the same variables accurately.
Significance of Accurate Estimates
The results of good estimates extend to nearly all levels in the construction process. Good cost estimating keeps things within their financial viability. It aids the client in determining whether the project is feasible within set budget limits. Besides, it helps in resource allocation, therefore enabling contractors to plan and limit any potential financial losses.
Inaccurate estimates can bring along a host of problems. Underestimating of costs may lead to financial deficiencies, sometimes even canceling the project in its entirety, while overestimating may scare away a potential client and stakeholders with inflated estimates, translating into lost opportunities.
