Importances Of Estimation And Costing In Construction Project - Lceted

Importances Of Estimation And Costing In Construction Project 

Estimation and Costing is a technique used for calculating Quantities or Expenditure for a particular work or project.

Below we will briefly explain its various purposes used in the construction project

For Government Approval

We need government approval, commonly known as "administrative approval" in government departments, to take on a "policy basis" to start a house construction or project.

Choice Of Construction Materials / Technologies

Choosing the right construction materials is essential to successfully complete a construction project. estimation is key to planning and selecting the right construction materials and determining the right technology.

More or less of each cost can help you choose from different cost alternatives,The total cost ultimately depends on the price of the selected products, which are widely available on the market.

Material Requirement

It can be useful for assessing the amount of materials required for the proposed construction work. Therefore, the materials can be purchased and arranged according to the estimated time during the work proposal, depending on their need. (Not all products are available in market-ready form / stocks)

Labour Requirement

To have the detailed cost of various types of labour such as masonry, excavation, RCC (reinforced cement concrete) work, plaster, painting.

Equipment, Machines & RCC Plants Requirement

It will help to know the quantity and cost of tools, Rcc plants, machinery and equipment needed to complete the construction

This may include the costs of maintaining various equipment, RCC plants & machinery

Estimates include the total amount and unit costs for the cost of loading, unloading and transporting construction materials.

To Schedule Project

To Plan the construction and schedule it according to cash flow, by the availability of funds.

To Make Changes

The owner & builder can make the final decision based on the final cost, to go ahead or make changes on the design & specification.

Project Sanction:

The estimation of work done by contractors helps to release the funds and helps to arrange the funds within the time of demand

Cost Management

Cost management is the key of estimating and costing.

To Make Tenders / Quotation

To help with tenders/ Quotation from contractors, compare rates with valuations and finalize with the contractor based on quantity/rates and work items.

Valuation

For estimating the existing property or any other technical structure its the technique for assessing or determining the fair market value of an asset can be very helpful.

When preparing an estimation, it is important to know the purpose of preparing the estimation. The estimation is prepared according to the needs of the project at different stages and it is very useful to decide and control the budget.

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