- Project plans
- Project activities
- Legislation and standards
- Industry context
- Specialist wikis
Last edited 29 Sep 2020
The term ‘estimate’ is a very broad one that refers to any activity that attempts to quantify something. In the construction industry, it is typically used in relation to the approximate costs associated with a construction project, used, for example to assess the viability or affordability of the project or aspects of it.
An estimate is an attempt to predict the likely expenditures associated with a project as accurately as possible. The degree of detail and the accuracy of estimates will typically increase as the project progresses, more decisions have been made, and more information is available, however, their true accuracy only becomes apparent once the project is complete and the actual costs incurred.
- Benchmarking, which is a process by which other similar projects are used as comparisons.
- Breaking down an overall estimated construction cost into percentages for different elements, based on the experience of the cost consultant.
- Measuring defined quantities from drawings.
Initial cost estimates might include wider project costs that the client might incur, such as; fees, equipment costs, furniture, the cost of moving staff, contracts outside of the main works, and so on. Later in the project, estimates are likely to focus on the construction cost of the project. It is important to be clear therefore what costs are being included in estimates, and estimates might be accompanied by a schedule of the assumptions that have been made.
Estimates will generally include contingencies, which are downside risk estimates that make allowance for unknown risks associated with a project. At the preliminary business plan stage, estimates might include a 15% contingency, but this may then be reduced as the project progresses and risks pass.
 Related articles on Designing Buildings Wiki
- Base cost estimate.
- Building works estimate.
- Cash flow projection.
- Common mistakes in bill of quantities.
- Cost overruns.
- Cost plan
- Elemental method.
- Extra over (EO).
- Initial cost appraisal.
- Irrelevant cost.
- Operational rate estimate.
- Post tender estimate.
- Pre-tender estimate.
- Spon's Price Book.
- Tender pricing document.
- Top down and bottom up estimating.
- Unit price estimate.
Featured articles and news
Government announces global innovation strategy.
An architectural biography. Book review.
The house where the future king of France lived.
The teacher, architectural technologist and mum offers her insights.
Careful planning needed as supply chain issues continue.
The sensitive conversion of a neglected Cornwall structure.
Plan stresses local involvement in city, town and village development.
Environment Agency publishes BAT guidance.
CLC guidance outlines carbon reduction priorities.
Making the most of a staycation.
Organisation urges G20 to revisit wind energy.
The historian spent much of his life compiling architectural resources.