There are three types of cost estimates ?
1. Bench Marking for Feasibilities
Is a high-level cost per m2 based on historic data on similar projects. It is very similar to a cost plan but based on a footprint measurement called GFA or CFA (Prefered by builders). It is a good indication of price based on an approximate area as a concept stage.
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2. Cost Planning at Design Stage
Is a preliminary estimate based on schematic Design drawings? Normally used as a design cost management tool to sanity check the design team and normally presented in 11 to 16 section pricing schedules based on building elements such as walls, floors, roof, etc. Can be very accurate but still a global approximation.
If you wish to read more about Cost Plan Formats – Click Here
3. Detailed Estimate at Tender &/or Construction
Detailed estimates – Are normally produced when the design sketches have been developed into fully coordinated documents suitable for building approval prior to the actual construction stage. The trade pricing is separated into a standardized pricing schedule (can be supplied by client) and a critical path construction program is normally produced so the builder can apply science to the duration of the project and capture all the onsite preliminaries costs. The level of detail will be a direct reflection of the risk the builder carries into construction and the margin and running costs are added. As a sanity check – the total contract price is can be extracted back to a cost per m2 based on the “Construction Floor Area” (CFA) for future benchmarking and the elemental pricing can be also used for Cost planning.
If you wish to read more about
BOQ Formats – Click Here
First & Second Principles – Click Here
CFA=FECA+UCA – Click Here
