What is Construction Cost Estimation?

Construction cost estimation is an important aspect in the field of civil engineering. The cost concern is a governing factor in the execution of any construction project. Every project in construction must determine an approximate construction cost in order to study the feasibility of the project. 

Purpose of Construction Cost Estimation

The main purpose of construction cost estimation are:

1. Understand Various aspects of the Project
2. Approval of the project from the administrative level
3. A justification is obtained ( Mainly in a commercial project) about the net income earned and the amount invested.

Approximate estimation of the project can be obtained with the help of:

1. Practical Knowledge
2. Comparison of the project with already conducted project estimates

The estimation of the cost is conducted considering all the important aspects related to the building, the site, and the locality. A report of the necessity and the utility is attached along with the cost estimation of the building. A site layout or plan is attached along with the report. 

An amount of 5 to 10 % is added to the cost estimated in order to incorporate contingencies faced in the project.

Methods of Construction Cost Estimation

Three approximates methods can be used in the construction cost estimation. They are:

1. Plinth Area Method
2. Cubical Content Methods
3. Unit Base Method

Read More : Types of Construction Cost Estimation