Preliminary Estimate

Before defining the methods for preliminary estimating let’s take a look at what is a preliminary estimate.

Preliminary estimating is the process of making early estimations and planning the design before more detailed information becomes available. It is the calculation made before the construction project and can be changed into more accurate estimations when the full information is available. It is used in the construction project to determine the project scope budget and timeline for the feasibility studies and risk analysis.

It is important to understand that preliminary estimating is not final and it can be refined and updated as the project continues.

Preliminary estimating plays an important role in the planning and decision-making of the project. Some reasons are:

Various methods are used for preliminary estimating of the construction project. They are:

Analogous Estimating

Analogous estimating is the method of preliminary estimate that involves using historical data from a project that is similar to your project to estimate the cost needed for the project. This technique is used when there is not a lot of information available for the project and it is difficult to generate accurate estimations.

The important part of analogous estimating is to choose a project that is as similar as possible. When the project is relevant, it will be easy to identify the items in the project.

The steps involved in the analogous estimating are:

Make a list of similar past projects.
Collect data for relevant things like cost, time, scope, etc.
Create a list of similarities.
Decide the type of estimates required for the project.
Calculate estimate values for the project.

Bottom-Up Estimating

Bottom-up estimating involves creating a breakdown structure for the construction project to get a better view of the project. It involves breaking your project into smaller tasks and tackling them separately. It can be time-consuming but is more efficient and accurate.

It helps to determine the overall cost and timeline of the project. When you have detailed information about the project before starting it, it helps to determine:

Reducing material wastage not only contributes to cost-effective management but also boosts the company’s reputation as it keeps the environment clean.

In any case, the general material wastage can lead up to 30 percent which means by using takeoff services there is a lot of room for saving costs which can be reinvested in the growth of the business.

Three-Point Estimating

Three-point estimating is the method of preliminary estimates that involves creating best-case, worst-case, and most likely scenarios for each task of the project. These are used to generate the possible estimates for the cost. It also helps to generate risk associated with each task.

Three-point estimating is the compilation of three estimating techniques which are:

The benefit of using three-point estimating is that it takes team members’ opinions into consideration which increases engagement.

Parametric Estimating

Parametric estimating uses statistical and mathematical data to estimate the resources and costs of the construction project. This method uses assumptions in mathematical form to analyze the possible needs of the project. It uses a statistical relationship between the historical data and variables to generate results.

This type of method usually generates the most accurate type of estimates. It can applied to the overall project or different segments of the project. Professional estimators use parametric estimating for deciding the budget because it is known to be reliable.

Parametric estimating generates two types of results that are:

Despite being the most reliable and accurate, parametric estimating is not always the best option for project values. These three conditions need to be met when using it:

A construction project consists of multiple contractors responsible for different aspects of the project. Accurate takeoff enables project planners to understand what each contractors require to complete their part of the project which helps them to plan and schedule their work accordingly. It ensures the contractors have the right resources at the right time to minimize delay and maximize productivity

If you’re in search of the professional estimating services you can count on, we are eager to help! Call us
or upload your plans in the link below to get a quote in the next 5 minutes

What Is A Preliminary Estimate And How It Helps?

A preliminary estimate or conceptual estimate is used to forecast the project cost to analyze the economic feasibility of the construction project prior to the development of detailed drawing plans. It helps contractors, real estate developers, home builders, and owners in making decisions for allocating funds, setting the preliminary budget and comparing initial design alternatives.

As preliminary cost estimates are carried out at the beginning of the project before the actual design and construction, therefore they are mainly based on historical data of the projects adjusted to the time, location, size, and prepared using engineering concepts.

There are several types of preliminary cost estimates that are employed at various stages in the lifecycle of the project. The accuracy of these estimates depends on the extent of the information provided by the client.

Rough Order Magnitude Estimate

The first attempt to estimate in the project’s lifecycle is regarded as a rough order magnitude estimate or ROM. It is employed to analyze the feasibility of the project that contributes to the project’s selection and allocation. It has accuracy in the range of -50% to +50%.

Budget Estimate

The budget estimate is prepared using past projects’ data and plans when the project comes into its planning stage. It defines the costs associated with the major components of the projects in each line description including materials and labor costs. Its accuracy lies in the range of -10% to +25% of the actual cost.

Ballpark Estimate

Ballpark estimate is developed by the contractors to define the scope of work to their clients, so that owners can make decisions according to their budget. It is evaluated on the basis of preliminary drawings and specifications, and its accuracy lies within 20% of the actual cost.

Definitive Estimate

A definitive estimate is also known as a digital cost estimate contains a detailed itemized list of components involved in the project. It is prepared by using thoroughly developed project plans and has an accuracy of -5% to +15%.

How Can Our Preliminary Estimate Benefit You?

Our estimates can help you in evaluating the initial cost to support in:

Managing the budget and getting loans
Setting the project cost limit for Architects and designers
Getting the idea of probable amount and cost of material and labor.
Planning the next phase.
Allocating and negotiating with contractors and subcontractors

Expert Judgment

This type of preliminary estimate involves contacting experts in a similar field to estimate the cost and resources of the construction project. This method is useful when there is limited historical data available or if the project is complex.

It is a technique used in project estimation that refers to making a judgment based on skills and expertise. The expertise is based on training or educational background.

How Does Our Preliminary Estimate Benefit You?

Our experts in precision estimator help you identify the cost for:

Our estimators study and evaluate all the information to identify the scope of the project. They collect data from similar past projects. They adjust the location, time, and size of the current project to generate the most accurate estimates for your construction project.

We offer reliable and precise estimates which are affordable at the same time. Our team works with full dedication to generate the most accurate outcome possible. We take pride in owning our service which provides the most reliable and efficient estimating solutions.

We follow a strict guideline that ensure to provide the right services to our clients.

For more Information Visit Our Social profiles Facebook , LinkedIn , Instagram and Pinterest.

Preliminary Estimate

Before defining the methods for preliminary estimating let’s take a look at what is a preliminary estimate.

It is important to understand that preliminary estimating is not final and it can be refined and updated as the project continues.

Preliminary estimating plays an important role in the planning and decision-making of the project. Some reasons are:

Various methods are used for preliminary estimating of the construction project. They are:

Analogous Estimating

The important part of analogous estimating is to choose a project that is as similar as possible. When the project is relevant, it will be easy to identify the items in the project.

The steps involved in the analogous estimating are:

Bottom-Up Estimating

Bottom-up estimating involves creating a breakdown structure for the construction project to get a better view of the project. It involves breaking your project into smaller tasks and tackling them separately. It can be time-consuming but is more efficient and accurate.

It helps to determine the overall cost and timeline of the project. When you have detailed information about the project before starting it, it helps to determine:

Reducing material wastage not only contributes to cost-effective management but also boosts the company’s reputation as it keeps the environment clean.

In any case, the general material wastage can lead up to 30 percent which means by using takeoff services there is a lot of room for saving costs which can be reinvested in the growth of the business.

Three-Point Estimating

Three-point estimating is the method of preliminary estimates that involves creating best-case, worst-case, and most likely scenarios for each task of the project. These are used to generate the possible estimates for the cost. It also helps to generate risk associated with each task.

Three-point estimating is the compilation of three estimating techniques which are:

The benefit of using three-point estimating is that it takes team members’ opinions into consideration which increases engagement.

Parametric Estimating

This type of method usually generates the most accurate type of estimates. It can applied to the overall project or different segments of the project. Professional estimators use parametric estimating for deciding the budget because it is known to be reliable.

Parametric estimating generates two types of results that are:

Despite being the most reliable and accurate, parametric estimating is not always the best option for project values. These three conditions need to be met when using it:

If you’re in search of the professional estimating services you can count on, we are eager to help! Call us or upload your plans in the link below to get a quote in the next 5 minutes

What Is A Preliminary Estimate And How It Helps?

As preliminary cost estimates are carried out at the beginning of the project before the actual design and construction, therefore they are mainly based on historical data of the projects adjusted to the time, location, size, and prepared using engineering concepts.

There are several types of preliminary cost estimates that are employed at various stages in the lifecycle of the project. The accuracy of these estimates depends on the extent of the information provided by the client.

Rough Order Magnitude Estimate

The first attempt to estimate in the project’s lifecycle is regarded as a rough order magnitude estimate or ROM. It is employed to analyze the feasibility of the project that contributes to the project’s selection and allocation. It has accuracy in the range of -50% to +50%.

Budget Estimate

Ballpark Estimate

Ballpark estimate is developed by the contractors to define the scope of work to their clients, so that owners can make decisions according to their budget. It is evaluated on the basis of preliminary drawings and specifications, and its accuracy lies within 20% of the actual cost.

Definitive Estimate

A definitive estimate is also known as a digital cost estimate contains a detailed itemized list of components involved in the project. It is prepared by using thoroughly developed project plans and has an accuracy of -5% to +15%.

How Can Our Preliminary Estimate Benefit You?

Our estimates can help you in evaluating the initial cost to support in:

Expert Judgment

This type of preliminary estimate involves contacting experts in a similar field to estimate the cost and resources of the construction project. This method is useful when there is limited historical data available or if the project is complex.

It is a technique used in project estimation that refers to making a judgment based on skills and expertise. The expertise is based on training or educational background.

How Does Our Preliminary Estimate Benefit You?

Our experts in precision estimator help you identify the cost for:

Our estimators study and evaluate all the information to identify the scope of the project. They collect data from similar past projects. They adjust the location, time, and size of the current project to generate the most accurate estimates for your construction project.

We offer reliable and precise estimates which are affordable at the same time. Our team works with full dedication to generate the most accurate outcome possible. We take pride in owning our service which provides the most reliable and efficient estimating solutions.

We follow a strict guideline that ensure to provide the right services to our clients.

For more Information Visit Our Social profiles Facebook , LinkedIn , Instagram and Pinterest.

If you’re in search of the professional estimating services you can count on, we are eager to help! Call us
or upload your plans in the link below to get a quote in the next 5 minutes