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Construction Cost

Construction cost estimating involves forecasting the cost of building a physical structure. Builders and clients create estimates to avoid cost overruns and ensure projects can be completed within budget. They seek multiple estimates from contractors and independent estimators for large projects. Project owners use estimates to determine feasibility and budgets, while contractors use them for bidding. Estimates are typically prepared with architect and engineer input to confirm financial and scope requirements are met. Accurate estimates help builders avoid losses and clients avoid overpaying.

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Kira Yamato
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138 views2 pages

Construction Cost

Construction cost estimating involves forecasting the cost of building a physical structure. Builders and clients create estimates to avoid cost overruns and ensure projects can be completed within budget. They seek multiple estimates from contractors and independent estimators for large projects. Project owners use estimates to determine feasibility and budgets, while contractors use them for bidding. Estimates are typically prepared with architect and engineer input to confirm financial and scope requirements are met. Accurate estimates help builders avoid losses and clients avoid overpaying.

Uploaded by

Kira Yamato
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Construction Cost Estimation Background

and Purpose
Construction cost estimating is the process of forecasting the cost of building a
physical structure. Of course, builders and clients both worry about the financial
impact of cost overruns and failing to complete a project. That’s why they devote
time and effort to estimating how much a project will cost before deciding to move
forward with it. Clients considering large projects often seek multiple cost estimates,
including those prepared by con

Construction cost estimating is the process of forecasting the cost of building a


physical structure. Of course, builders and clients both worry about the financial
impact of cost overruns and failing to complete a project. That’s why they devote
time and effort to estimating how much a project will cost before deciding to move
forward with it. Clients considering large projects often seek multiple cost estimates,
including those prepared by contractors and those calculated by independent
estimators.

Project owners use cost estimates to determine a project’s scope and feasibility and
to allocate budgets. Contractors use them when deciding whether to bid on a
project. You usually prepare estimates with the input of architects and engineers to
ensure that a project meets financial feasibility and scope requirements.

A good cost estimate prevents the builder from losing money and helps the
customer avoid overpaying. It’s a core component of earned value management, a
project management technique that tracks a project’s performance against the total
time and cost estimate.

Construction Cost Estimation Background


and Purpose
Construction cost estimating is the process of forecasting the cost of building a
physical structure. Of course, builders and clients both worry about the financial
impact of cost overruns and failing to complete a project. That’s why they devote
time and effort to estimating how much a project will cost before deciding to move
forward with it. Clients considering large projects often seek multiple cost estimates,
including those prepared by con

Construction cost estimating is the process of forecasting the cost of building a


physical structure. Of course, builders and clients both worry about the financial
impact of cost overruns and failing to complete a project. That’s why they devote
time and effort to estimating how much a project will cost before deciding to move
forward with it. Clients considering large projects often seek multiple cost estimates,
including those prepared by contractors and those calculated by independent
estimators.

Project owners use cost estimates to determine a project’s scope and feasibility and
to allocate budgets. Contractors use them when deciding whether to bid on a
project. You usually prepare estimates with the input of architects and engineers to
ensure that a project meets financial feasibility and scope requirements.

A good cost estimate prevents the builder from losing money and helps the
customer avoid overpaying. It’s a core component of earned value management, a
project management technique that tracks a project’s performance against the total
time and cost estimate.

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