Cost Estimating Techniques

The ability to estimate construction/installation and renovation projects is a valuable asset in building and facilities management. In addition to knowing how to estimate, it is important to know the degree of accuracy required at the various stages of the project. Further, estimates cannot be made more accurate than the degree of definition of the project. For example, at the conceptual stage, a square-foot cost will usually provide sufficient accuracy to determine the feasibility of the project. Whereas, after the contract drawings and specifications have been completed, the contractor will be able to determine the cost of the project to such accuracy that he would be willing to agree (contractually) to complete the construction and installation at a fixed price.