When it comes to the management of construction projects, cost estimation is a critical aspect. It plays a vital role in ensuring that projects stay within budget and get completed within the time frames.
Estimating the cost of the project is tricky
Cost estimation in construction projects ensures that there is no significant escalation in costs that could put the whole project in jeopardy. For this, two methods of cost estimation are usually resorted to. One is the top-down estimation which is an easier way to estimate a project. However, the accuracy of this method is debatable. A more time-consuming yet more reliable estimation relies on the bottoms-up estimation.
Cost estimation is required in preconstruction and during the construction phases because it helps to arrive at the overall budget of the project so that the funds can be arranged for every stage of construction so that work does not get hindered at any stage.
Reliable cost estimation is the key
At Direct Services LLC based in Oman and with an office in Kuwait, you get all the necessary construction services beginning with designing to laying of the foundation to constructing the structure to handing over the project. The company handles the entire process and is adept in handling projects as diverse as Hotels and Malls to Infrastructure, Housing and Residential apartments. As an established Grade 2 company, the company has upgraded to an excellent Grade in a short span.
When to get the first estimates?
An initial budget is usually required at the Schematic Design (SD) stage itself. It helps architects to arrive at the initial budget even with the sketchy amount of data usually consisting of the site plan, floor plans and a handful of such information. This can be the initial data to estimate and understand the overall extent of the project cost. This can include the utilities, and general requirements and takes into account the expectations of the client. This initial budget helps in realizing the rest of the design and estimating the spending requirements.
How is a realistic initial estimate made?
At the initial stage itself when only part of the project drawing is complete, a professional cost estimator’s service is utilized to prepare an estimate based on the schematic design. The involvement of a general contractor early and the delivery of preconstruction services including the budget helps to create an overall cost model based on the schematic design. The project architect also fills in with details of the entire scope of the project. A good contractor prepares budgets by being conservative in their projections. They are honest and do not over-promise nor under-deliver. It is always understood that any sound project is bound to cost more than the initial projection and can overshoot the construction period estimated by a comfortable margin. Good economic decisions can then be made based on the experience of the construction manager.
Final and more accurate project budget.
With clear and coordinated drawings, the final budgets can be established. It will include all the hard items of the construction cost, soft costs like design fees, and then there are all the fixtures, equipment and embellishments.
The post Importance of Budgeting and Cost Estimation in Construction Projects appeared first on Direct Services LLC.
Estimating the cost of the project is tricky
Cost estimation in construction projects ensures that there is no significant escalation in costs that could put the whole project in jeopardy. For this, two methods of cost estimation are usually resorted to. One is the top-down estimation which is an easier way to estimate a project. However, the accuracy of this method is debatable. A more time-consuming yet more reliable estimation relies on the bottoms-up estimation.
Cost estimation is required in preconstruction and during the construction phases because it helps to arrive at the overall budget of the project so that the funds can be arranged for every stage of construction so that work does not get hindered at any stage.
Reliable cost estimation is the key
At Direct Services LLC based in Oman and with an office in Kuwait, you get all the necessary construction services beginning with designing to laying of the foundation to constructing the structure to handing over the project. The company handles the entire process and is adept in handling projects as diverse as Hotels and Malls to Infrastructure, Housing and Residential apartments. As an established Grade 2 company, the company has upgraded to an excellent Grade in a short span.
When to get the first estimates?
An initial budget is usually required at the Schematic Design (SD) stage itself. It helps architects to arrive at the initial budget even with the sketchy amount of data usually consisting of the site plan, floor plans and a handful of such information. This can be the initial data to estimate and understand the overall extent of the project cost. This can include the utilities, and general requirements and takes into account the expectations of the client. This initial budget helps in realizing the rest of the design and estimating the spending requirements.
How is a realistic initial estimate made?
At the initial stage itself when only part of the project drawing is complete, a professional cost estimator’s service is utilized to prepare an estimate based on the schematic design. The involvement of a general contractor early and the delivery of preconstruction services including the budget helps to create an overall cost model based on the schematic design. The project architect also fills in with details of the entire scope of the project. A good contractor prepares budgets by being conservative in their projections. They are honest and do not over-promise nor under-deliver. It is always understood that any sound project is bound to cost more than the initial projection and can overshoot the construction period estimated by a comfortable margin. Good economic decisions can then be made based on the experience of the construction manager.
Final and more accurate project budget.
With clear and coordinated drawings, the final budgets can be established. It will include all the hard items of the construction cost, soft costs like design fees, and then there are all the fixtures, equipment and embellishments.
The post Importance of Budgeting and Cost Estimation in Construction Projects appeared first on Direct Services LLC.