Cost Estimate

Cost Estimation

Design Estimations offers a wide range of construction cost estimating services and cost management services to cater to the needs of the ever-growing construction industry. Being in the business for many years, we have reached a point where we totally understand the market conditions and can handle cost estimates for the project of any complexity. Our team of expert estimators deliver accurate, timely and comprehensive estimates containing marked-up plans with a special emphasis on precision and attention to detail and remain engaged with the clients from conception to completion of the project.

Construction Cost Estimating

Construction estimating is the process of calculating all of the required costs for a construction project, including direct costs (e.g. materials and worker wages) and indirect costs (e.g. equipment depreciation and office worker salaries). Professional construction estimators perform this essential step in the preconstruction process, which helps ensure that owners and contractors are able to complete a construction project profitably. Estimating project costs accurately requires detailed knowledge of construction materials, specifications, techniques, codes, and pricing trends. We’ll walk through all of the steps professional estimators use to determine costs on a project—from reviewing a bid package all the way through accounting for contingency and profit.

The Importance of Accurate Estimating

Accurate estimating is essential for the success of any construction project. Both owners and contractors rely on cost estimates to move a project from preconstruction to completion. Without an initial understanding of a project’s costs, owners cannot determine whether a project is feasible within the allotted budget. After a preliminary estimate, design or scope modifications may be required in order to alter project costs.

Contractors also depend on accurate estimates in order to prepare bids that are competitive and profitable. A contractor that underestimates the cost of a project could be forced to cut into their own profit margin to cover project costs. On the other hand, overestimating the actual project costs could lead a contractor to submit a bid that’s too high to be selected. Even in negotiated bidding scenarios, construction estimates need to be accurate in order to strike a balance between the owner’s budget and the contractor’s profit.

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