Cost estimates are projections of project costs that are often made before to the project’s commencement. It is made in a number of different types depending on the requirements of the project.
The cost estimates for the construction may be calculated either broadly without going into considerable detail or precisely by taking each component into account separately. Based on these standards, there are essentially 8 cost estimates utilised in construction:
- A preliminary price quote
- The Plinth Area Cost Estimate
- Approximated Cost of Cube Rate
- A preliminary cost estimate based on the quantity method
- A comprehensive cost analysis
- Revisions to Cost Calculation
- A second cost projection
- A rough estimate of yearly repair costs
1. A preliminary price quote
The preliminary cost estimate is also known as the abstract cost estimate, approximate cost estimate, or budget estimate. This estimate is often made in the early stages of the project to estimate a rough cost. The administrative section’s financial position and policies may be determined by the relevant sanctioning authority using this evaluation.
Using a practical method, preliminary estimates are made by examining the cost of projects of a similar nature. The projected cost for each key item of work is shown individually in this estimate to help you comprehend its significance and worth. Among the costs associated with work include those for lands, roads, energy, water supply, each building’s price, etc.
2. The Plinth Area Cost Estimate
The plinth area rate, which is the cost of a building with comparable specifications in the area, and the plinth area of the building, which is the area covered by its external measurements at floor level, are used to estimate the cost of a plinth area.
The estimated plinth area is calculated by multiplying the building’s plinth area by the plinth area rate. For instance, if we need to estimate a plinth area of 100 square metres and a building in the same neighbourhood has a plinth area rate of 2000 per square metre, we would multiply 100 by 2000, or 200000.
Open areas like courtyards are not included in the plinth area. If the structure is multi-story, a separate estimate of the plinth area is made for each floor level.
3. Approximated Cost of Cube Rate
One may get the cube rate cost estimate for a construction by dividing the plinth area by the height of the building. The height of a building should be calculated from the foundation up to the top of the roof. For buildings with several stories, it works nicely.
Compared to the plinth area methodology, this estimation method is more precise. The rate per cubic metre is calculated based on the costs of nearby structures of a similar type. The foundation, plinth, and parapet above the roof level are not taken into consideration in this kind of assessment.
4. A preliminary cost estimate based on the quantity method
The approximate amount method cost estimate measures the length of every wall in the construction, and the cost of the structure is calculated by multiplying this length by the rate per running metre. The foundation and superstructure each have their own rate per running metre.
The price of excavation and brickwork up to the plinth are taken into consideration when calculating the rate per running metre for a foundation. The rate per running metre is calculated while taking into account superstructure quantities such brickwork for walls, woodworking, finishing for flooring, etc.
5. A comprehensive cost analysis
A thorough cost estimate is produced after the preliminary estimates have been approved by the relevant administrative authority. This estimate is really accurate. Each work item’s amount is measured, and separate cost computations are generated for each one.
Prices for different items are provided in accordance with current market rates, and the estimated total cost is calculated. For unforeseen costs and additional charges, this is raised by 3 to 5% of the anticipated cost.
The thorough estimate has to contain the following details and files.
- General Requirements
- Exceptionally specific details
- Plans and drawings, including comprehensive drawings as well as floor plans, elevations, and sectional views.
- Designs and calculations, including foundation, slab, and beam designs for structures.
6. Revisions to Cost Calculation
A updated cost estimate is produced when the original sanctioned estimate amount is exceeded by 5% or more. It is a comprehensive estimate.
The cost of goods or transportation may have unexpectedly increased, for instance, leading to the increase. The explanation for the modification should be included on the last page of the new estimate.
7. A second cost projection
When more work is required while the primary project is still in progress, a complete estimate known as a supplementary cost estimate is produced. The final cost of the work, which should include any extra charges requiring approval, should be included on the estimate sheet in addition to the original estimate’s cost.
8. A rough estimate of yearly repair costs
The yearly repair cost estimate, sometimes referred to as the annual maintenance estimate, is made to ascertain the costs associated with maintaining the building’s safety. Simple repairs like painting and whitewashing are considered when estimating a structure’s yearly maintenance costs.