Importances Of Estimation And Costing In Construction Project
Estimation
and Costing is a technique used for
calculating Quantities or Expenditure for a particular work or project.
Below
we will briefly explain its various purposes used in the construction project
For Government Approval
We need
government approval, commonly known as "administrative approval" in
government departments, to take on a "policy basis" to start a house construction
or project.
Choice Of Construction Materials / Technologies
Choosing the right construction materials is essential to
successfully complete a construction project. estimation is key to planning and
selecting the right construction materials and determining the right
technology.
More or less of each cost can help you choose from different cost
alternatives,The total cost ultimately depends on the price of the selected
products, which are widely available on the market.
Material Requirement
It can be useful for assessing the amount of
materials required for the proposed construction work. Therefore, the materials
can be purchased and arranged according to the estimated time during the work proposal,
depending on their need. (Not all products are available in market-ready form /
stocks)
Labour Requirement
To have the detailed cost of various types of labour such as
masonry, excavation, RCC (reinforced cement concrete) work, plaster, painting.
Equipment, Machines & RCC Plants Requirement
It will help to know
the quantity and cost of tools, Rcc plants, machinery and equipment needed to
complete the construction
This may include the
costs of maintaining various equipment, RCC plants & machinery
Estimates include the
total amount and unit costs for the cost of loading, unloading and transporting
construction materials.
To Schedule Project
To Plan the construction and schedule it according to cash flow, by
the availability of funds.
To Make
Changes
The owner & builder can make the final decision based on the
final cost, to go ahead or make changes on the design & specification.
Project
Sanction:
The estimation of work done by contractors helps to release the
funds and helps to arrange the funds within the time of demand
Cost Management
Cost management is the key of estimating and costing.
To
Make Tenders / Quotation
To help with tenders/ Quotation
from contractors, compare rates with valuations and finalize with the contractor
based on quantity/rates and work items.
Valuation
For estimating the existing property or
any other technical structure its the technique for assessing or determining
the fair market value of an asset can be very helpful.
When preparing an estimation, it is
important to know the purpose of preparing the estimation. The estimation is
prepared according to the needs of the project at different stages and it is
very useful to decide and control the budget.
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