Estimating is the technique of calculating or Computing the various quantities and the expected Expenditure to be incurred on a particular work or project.
Estimating and costing in construction management is the calculation of quantities of materials, tools, equipments, labors etc. and cost associated with them.
Construction contractors usually prepare bids or tenders to compete for a contract award for a project. To prepare the bid, first a cost estimate is prepared to determine the costs and then establish the price(s). This involves reviewing the project’s plans and specifications to produce a take off or quantity survey, which is a listing of all the materials and items of work required for a construction project by the construction documents. Together with prices for these components, the measured quantities are the basis for calculation of the direct cost. Indirect costs and profit are added to arrive at a total amount.
Commercial cost estimating software applications were originally created to overcome errors occuring due to manual estimation by using hard-coded formulas and data structures. Other benefits include the use of reference databases for costs and other data, predictable and professional looking reports, speed, accuracy, and overall process standardization.
As cost estimating programs became more and more popular over the years, more advanced features, such as saving data for reuse and trade-specific calculations, have become available.
These systems enable cost estimators and project managers to collaboratively work with multiple projects, multiple estimates, and multiple contracts.
The level of collaboration, transparency, and information re-use enabled by Cost Estimating and Efficient Project Delivery has the following advantages
1) 15-25%+ reductions in procurement cycles,
2) six to ten times faster estimating,
3) reduce overall project times,
4) significant reduction in change orders
5) virtual elimination of contract related legal disputes
Estimating
Construction contractors usually prepare bids or tenders to compete for a contract award for a project. To prepare the bid, first a cost estimate is prepared to determine the costs and then establish the price(s). This involves reviewing the project’s plans and specifications to produce a take off or quantity survey, which is a listing of all the materials and items of work required for a construction project by the construction documents. Together with prices for these components, the measured quantities are the basis for calculation of the direct cost. Indirect costs and profit are added to arrive at a total amount.
Commercial cost estimating software applications were originally created to overcome errors occuring due to manual estimation by using hard-coded formulas and data structures. Other benefits include the use of reference databases for costs and other data, predictable and professional looking reports, speed, accuracy, and overall process standardization.
As cost estimating programs became more and more popular over the years, more advanced features, such as saving data for reuse and trade-specific calculations, have become available.
These systems enable cost estimators and project managers to collaboratively work with multiple projects, multiple estimates, and multiple contracts.
The level of collaboration, transparency, and information re-use enabled by Cost Estimating and Efficient Project Delivery has the following advantages
1) 15-25%+ reductions in procurement cycles,
2) six to ten times faster estimating,
3) reduce overall project times,
4) significant reduction in change orders
5) virtual elimination of contract related legal disputes