If you want to learn about different Types of Construction Cost Estimation then you have come to the right place. For a cost calculator, it is important to know about types of cost estimation. Even if you are an expert estimator it is always good to refresh the basics.

One thing to note is that there's a difference between types of Construction Cost Estimation and methods for Cost Estimation. In this article, we are going to address both of them. 

5 Types of Construction Cost Estimation

1) Preliminary Cost Estimate

Preliminary Cost estimates are one of the common types of Construction Cost Estimation. This type of estimate is conducted at the start of the project. They are not quite accurate but present a rough estimate.

Preliminary estimate can be used to get funding or reconsider Construction decisions. These estimates are helpful to assess the practicality of the project. Since they are done in the pre-construction stage one can change the project plan based on these estimates. 

2) Order of Magnitude Estimate

The order of Magnitude is similar to the preliminary estimate. The main purpose of order of magnitude is to present a ballpark estimate of the construction project. These types of Construction Cost Estimation are popular for commercial or industrial buildings. Rough calculations are made and stakeholders examine these calculations to assess the scope of the project.

This estimate also includes a rough estimate for completion time of the project. Estimators or contractors generally use historical data to calculate it. 

3) Feasibility Cost Estimate

The main aim of the feasibility cost estimate is to check the project's validity. Many stakeholders are opting for Feasibility studies. It helps to decide whether they should be ahead with the project or it's a futile idea. It helps to save money and time. Estimators assess environmental factors, risk factors, and other properties to calculate the feasibility of the project.

4) Substantive Cost Estimate

This type involves an extensive approach to the estimation process. Substantive cost estimation is more extensive than preliminary or change order magnitude estimate. It is done in later stages of the construction project. All the direct and indirect costs related to the construction project are evaluated. Then a comprehensive cost budget is presented to the client. 

5) Detailed Cost Estimate

A detailed cost estimate, as the name suggests is the most detailed form of cost estimation. Each cost-affecting factor is broken down and is included in the budget. Estimators who conduct detailed estimates are adept in their craft. Detailed Estimate is the most time taking one but it is also the most accurate form of estimate. It is performed in the later stages of the construction project when the project's goals and objectives are clear. 

Construction Estimating Methods 

Simply, in construction, there are two methods of estimation. Estimators make sure to adopt and incorporate the suitable method as per the requirements of a particular project at hand. These methods are as follows:

1) Traditional Method 

Applying conventional methods in cost estimation solely depends upon the expertise of a professional. In this way, the process of estimation becomes time-consuming as well and more resources are deployed. In addition to that, traditional method estimates are more prone to human mistakes and errors. Thus, the prospect of accuracy decreases, compromising the value of estimates in construction projects. 

2) Digitized Modern Method 

Cost Estimating Services, such as Bidding Estimate, have moved on from manual methods to digital ones. Digitalization has taken over the construction industry has turned the tables and maximizes the prospect of precision. Applying software in the process of estimation has numerous advantages and the most commonly used software is as follows:

• PlanSwift

• Bluebeam

• XActimate

• STACK

• On Screen Takeoff

• ConEst

• McCormick Systems

• Trimble

• RS Means

• Quest Estimating 

• FastDuct

• FastPipe

This Cost Estimating Software provides its users with a variety of advantages which are as follows:

- It saves time as well as resources

- It eliminates the chances of human errors maximising accuracy

- It can perform complex computations easily and promptly

- It increases communication and collaboration 

- It gives more control over cost and project management

Final Verdict

In the end, there are various types of Construction Cost Estimation approaches. Thus it is important for a professional to fully understand them and make sure to implement the most appropriate in a particular project. It will not only streamline a Project's progress but make the process of estimation accurate and credible. This article points out some of the major types that are presently being followed globally.