Different Types of Construction Estimates You Need to Know

Estimation refers to the process of determining the quantities of the building materials, equipment, and labour as well as the costs that are required for a building construction project. Construction estimates play an important role in making project plans, managing the project, making budgets for the project, and making important decisions for the right execution of the project.

The construction estimates have been prepared by the quantity surveyors, estimators or the cost engineers who used to analyse the specifications of the project. Several factors including the cost of construction materials, expenses of the equipment, labour rates and contingencies influence the estimated costs for the overall construction project. In the construction estimation procedure, the construction project has been broken into smaller work items or components. This process involves the determination of the quantities for each building material as well as helps to apply the appropriate pricing data or unit rates for calculating the overall costs.

The construction estimates are the very important things in the construction process as they help the clients, project stakeholders and the contractors to understand the financial implications of the construction project. In addition, construction estimates also help to provide the basis for obtaining funding, approvals, or budgeting thus helping to assess the feasibility of the project within the available resources. In the case of available more detailed information due to the progression of the project, the construction estimates can be refined as well as updated which helps to provide a more accurate projection of the project costs.

Different types of construction estimates used in the construction procedure

There are various types of construction estimates used in the building construction procedure which helps to determine the cost and quantities that have been associated with the building construction project. The main types of construction estimates are as follows:

Preliminary Estimate or Rough Estimate

These types of construction estimates have been used to give a general idea about the overall project cost. This rough estimate has been performed at the initial stage of the project while there is limited information. This rough estimate helps to decide the contract price of the project.

Quantity Estimate

These types of construction estimates involve the measurement and quantification of the different material quantities, equipment and labour that have been required for each component of the building construction project. The quantity estimates have been performed on the basis of the detailed project specifications and drawings. This estimate helps to form the basis for the calculation of the costs in other types of construction estimates.

Bid Estimate

These types of estimates have been prepared by the contractors or subcontractors while submitting the proposal or bid for the building construction project. This bid estimate involves a detailed calculation of the project costs on the basis of the project requirements and specifications. These types of estimates also help to determine the pricing and competitiveness of the contractors in the meantime of the bidding process.

Detailed Estimate

These types of construction estimates have been performed at the later stage of the project planning while more specific information is available. The detailed estimates involve the analysis of the project specifications, quantities and drawings. These types of estimates also help to provide a more accurate projection of the project costs and have been used for tendering, budgeting and contract purposes.

Revised Estimate

These types of estimates are the detailed estimates of the revised rates and quantities of the construction items which are provided initially in the estimate process. A revised estimate has been prepared while the sanctioned amount has exceeded more than 5% as the rates have been found insufficient.

Supplementary Estimate

Some additional work has been required during the development of the project. In this context, a freshly detailed estimate has been prepared to describe the additional work which has been called the supplementary estimate. In the meantime of the project work progression, some additions or modifications have been approved because of the material deviation of the structural nature and in this case, the supplementary estimate has been included.

Annual Maintenance or Repair Estimate

The repair estimate has been done for the building construction structure to keep those structures in perfect condition. It is necessary to keep the maintenance aspect in view to ensure the proper functioning of the construction project. The annual maintenance estimate has been done in the case of the painting of the building, repairing the cement plasters, oiling, whitewashing, repairing floors and others. The annual repair estimates have been also prepared for those construction items which need replacement, repair and renewal for maintenance purposes. This estimate helps to upkeep the building infrastructure on an annual basis.

Cost Estimates

Three types of construction cost estimates have been used on the basis of the types of information available for the estimates which are as follows:

Historical estimate

These types of cost estimates have been taken from past similar types of projects which are generally used for residential projects. These types of estimates only have been used at the initial stage of the construction project while a lot of information is not available as it is less accurate.

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Parametric estimate

These types of cost estimates have been taken by using the standard per unit rate and multiplied with the dimensions to achieve the total estimates. As compared to the historical estimates, this parametric estimate is the more accurate process.

Bottom-up estimate

In these types of estimates, the basic work has been estimated first by the contractor, and after that, the costs of the more complex work in the building construction project. In these types of estimates, each type of construction work has been estimated separately which helps to achieve a very accurate estimation of the costs. These types of cost estimates are only used when sufficient information is available.