Types of cost estimating techniques in different stages of construction projects

A cost estimate is a forecasted expenditure for a project that is typically prepared before the project
begins. It is prepared in various types based on the project's requirements.

Construction cost estimates can be prepared in either a detailed manner, item by item, or in an
approximate manner, without delving too deeply into the details. There are primarily eight cost
estimates used in construction based on these criteria:

Preliminary Cost Estimate

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A preliminary cost estimate may also be referred to as an abstract cost estimate, an approximate cost
estimate, or a budget estimate. This estimate is typically prepared in the early stages of a project to
determine the approximate cost of the project. The competent sanctioning authority can decide the
financial position and policy for the administration section based on this estimate. Preliminary estimates
are prepared with a practical reference to the cost of similar type projects. The approximate cost of each
important item of work is displayed individually in this estimate to determine the necessity and utility of
each item of work. The costs of land, roads, electrification, water supply costs, and the cost of each
building are among the items of work.

Plinth Area Cost Estimate

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Plinth area cost estimates are prepared using the plinth area of the building, which is the area covered
by the external dimensions of the building at the floor level, and the plinth area rate of the building,
which is the cost of a similar building with similar specifications in that locality.

Plinth area is calculated by multiplying the plinth area of the building by the plinth area rate.
The plinth area does not include open areas, courtyards, and so on. If the structure is multi-story, the
plinth area is calculated separately for each floor level.

Cube Rate Cost Estimate

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A building's cube rate cost estimate is obtained by multiplying the plinth area by the building's height.
The height of the building should be measured from the floor to the peak of the roof. It is better suited
for multi-story buildings.

This estimation method is more accurate than the plinth area method. The rate per cubic meter is
calculated using the costs of similar types of buildings in the same location. This type of estimate
excludes the foundation, plinth, and parapet above the roof level.

Approximate Quantity Method Cost Estimate

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The total wall length of the structure is measured and multiplied by the rate per running meter to
determine the cost of the building in the approximate quantity method cost estimate. The rate per
running meter for the foundation and superstructure is calculated separately. In the case of foundations,
the rate per running meter is determined by taking into account quantities such as excavation cost, brick
work cost, and plinth cost. In the case of superstructures, quantities such as brickwork for walls,
woodwork, floor finishing, and so on are taken into account when determining the rate per running
meter.
Detailed Cost Estimate

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When the preliminary estimates have been approved by the competent administrative authority, a
detailed cost estimate is prepared. This is a very accurate estimate. The quantity of work items is
measured, and the cost of each item of work is calculated separately.

The rates for various items are provided based on the current workable rates, and the total estimated
cost is calculated. As miscellaneous expenditure, 3 to 5% of the estimated cost is added for
contingencies.

The following details and documents should be included in the detailed estimate.

Report

General Requirements

Specifications in Depth

Layout plans, elevations, sectional views, detailed drawings, and so on.

Designs and calculations - In the case of buildings, foundations, beams, slabs, and so on.

Rates Schedule

Revised Cost Estimate

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When the original sanctioned estimate value is exceeded by 5 percent or more, a revised cost estimate
is prepared.

The increase could be due to a sudden increase in the cost of materials, transportation, and so on. The
reason for the estimate revision should be stated on the last page of the revised estimate.

Supplementary Cost Estimate

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A supplementary cost estimate is a detailed estimate that is prepared when additional work is required
while the original work is being completed. The estimate sheet should include the cost of the original
estimate as well as the total cost of work, including any supplementary costs for which approval is
required.

Annual Repair Cost Estimate

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The annual repair cost estimate, also known as the annual maintenance estimate, is prepared to
determine the building's maintenance costs in order to keep the structure safe. When preparing an
annual repair estimate for a building, whitewashing, painting, minor repairs, and so on are all taken into
account.

Anupoju, S., 2020. 8 types of cost estimates in construction. The Constructor. Available at:
https://theconstructor.org/construction/top-eight-cost-estimates-construction/841/?amp=1 [Accessed
July 24, 2022].