Estimating construction costs is a traditional process in which both the project owner and the contractor do initial research before committing to the project. No one wants to lose money, so both parties do their own analysis on the financial effects of the cost increase, failure to complete, and potential project profitability. Basically, an accurate estimate will not only save a contractor money but also help the project owner avoid overpayment.
For owners, they use estimates to determine the scope and feasibility of the project and to allocate budget expenditures. For owners who plan large-scale projects, often look for multiple cost estimates, which are developed by general contractors and reviewed by independent estimators. Owners usually choose the lowest bid that meets their specified criteria and project requirements.
For contractors, however, accurate construction bid estimation win jobs. They make estimates to decide whether to bid on a project, ideally with the input of architects and engineers, to ensure that the project meets the requirements of financial feasibility and scope. ۔ The project also provides value to the owners, so they know if they want to work with a particular contractor.
The accuracy of construction cost bid estimation will depend on a number of factors:
– The quality of the project plan;
– The level at which the estimator describes the project.
– Bid Estimation skills and experience.
-Accuracy of cost information.
– and estimating the quality of the tools and procedures used.
Role of construction scheduling in cost estimation:
In the construction industry, time is as important as money.
The contractor often monitors when estimating is an important link to the project budget and schedule. When you make an estimate, you’re setting milestones to make sure and breaking down your project into stages. A little miscalculation over time and cost can also have devastating effects on budget allocations and project calendars, resulting in unexpected waste of money and delays in scheduling.