Construction Cost Estimations

Nowadays, the term estimation is defined as “a rough calculation of the value, number, quantity, or extent of something”. In other word estimation is refer to any activity that attempts to quantify something. An example of that is the attempt to assess the affordability of a Construction Project.  On other words, Construction Cost Estimations are used to identify the Construction Cost of a project.

Knowing the Construction Cost of a project is vital for a verity of reasons. For example, often Clients use those estimations to ensure that their financial objectives are obtainable prior to any commitments.

Types of Construction Cost estimation

There are numerous methods for estimating the construction cost of a project. However, we are going to look at the most used Construction Cost estimations method used in the UK known as initial cost appraisals and Elemental Cost Plans.

Firstly, an Initial cost appraisal, is used early on prior to the design stage of the project in order to develop a preliminary budget of the project. This preliminary budget is developed based on the information provided by the Client and by using cost information of similar completed projects. For example, an initial cost appraisal may define the Preliminary Budget by establishing a cost per GFA (Gross Floor Area) multiplied by the project’s GFA (e.g. £/GFA X GFA = Preliminary Budget)  

Secondly, an Elemental Cost Plan is used to break down the construction works in numerous elements (such as, Substructure, Superstructure, Internal finishes and so on) in an attempt to price those elements and proved a more accurate cost estimation. The level of such element breakdown is strongly depended on the accuracy required. If a more accurate estimation is needed then those elements will be broken down in more detail.

Is vital to bear in mind that Projects’ shape, size, quality of finishes is never the same as a result, the accuracy of this estimation is highly affected by the method used.

For Clients needing a preliminary budget in order to identify the best type of project (housing, hotel, mixed used development etc.) to proceed as a future investment, an Initial Cost Appraisal is a best method to follow. However, if a more accurate estimation is needed, the Elemental Cost Plan method is the way to go.

Outsourcing your Construction Cost Estimate

Outsourcing your Cost estimation can provide major advantages on reducing your costs. However, you must choose wisely your outsourcing agency as any construction estimations inaccuracies may cause major fanatical issues in the future.

We can ensure that our Construction Cost estimation are currently the highest quality on the online market. We are using advance software and a huge library of project cost adjusted accordingly to ensure the accuracy of our estimations.