What is the estimate?

Every serious construction begins with the preparation and approval of the estimate documentation. These documents make it possible to very accurately calculate the cost of construction, as well as monitor the expenditure of funds during the erection of a structure. Making an estimate for construction is not an easy task. Errors are possible both from the private builder and from the contractor. It is difficult to correctly take into account all items of expenditure, as well as unforeseen costs. For this reason, large construction companies create their own budget departments, and small companies turn to specialized organizations that know how to make an estimate correctly.

What is the estimate and what is it used for?

What is the estimate? This is a financial document, which is an obligatory part of the contract regardless of the form of ownership of the contractor. The cost estimate is made according to two main categories of costs:

- purchase of building materials;

- performance of work.

At the same time, there are a number of organizational and technical issues that require careful study:

• Terms of construction;
• The estimated scope of work;
• Number of materials;
• Used technologies;
• Number of working personnel;
• Planning stages, amounts of financing.

In addition, cost estimates help to ensure that the work performed is strictly on schedule, which is important for the supervision of the customer, technical control. It should be noted that the process of drawing up an estimate fully pays for itself and justifies it during construction.

Drawing up the estimate allows the customer to carefully think through all the stages of the work, and if necessary, make amendments before the construction. This document makes it possible for construction companies to minimize bureaucracy and uncontrolled reproduction of electronic and paper documentation. In addition, the availability of an estimate and a project allow the customer to designate a tender among contractors. And then monitor the quality of work and the amount of material compensation.

Quite often is the practice of ordering estimates from various design organizations. As a result, the client receives a number of estimates with a wide range of prices. So it turns out, because in different companies prices vary, suppliers, vehicles, the number of staff. Comparing the estimates, it is easy to understand where the differences lie.

Building organizations that are worried about their reputation can connect the customer to discuss the main positions of the estimate. At the same time they are available to explain where it makes sense to save, and where it is meaningless or even bad.

Sections of the estimate

Now that you have a general idea of what the estimate is, you can more specifically consider its content. It contains many items that may initially seem unnecessary. Experience shows that the existence of all positions justifies itself. An example is the cost of reconciliation, bureaucracy, obtaining permits from officials, the exploitation of transport. These items can be up to 15% of the total cost of the facility.

The mandatory positions include:

- development, preparation of the entire estimated package, corresponding to the design decision;

- optimization, checking estimates, if they were ordered from a third-party organization;

- coordination, protection of estimates in organizations that specialize in expertise.

Each estimate tries to cover unforeseen expenses, which can be up to 2%. Although in reality this figure can reach 5-10%. After discussion and approval, the estimate is approved and signed by the customer.

We hope that this article has helped you understand what the estimate is and where it is used.