While running a
single-family house construction, we have different types of cost estimates -
blind, investor and as-built. What
are they different from each other?
The cost estimate for
construction works is the document establishing the number of works, their type
and value. It is prepared on the
basis of an executive design or inventory. When
preparing it, the following are taken into account:
- types and quantities
of works;
- measurements;
- standards for the
consumption of materials, labor and equipment;
- labor rates;
- prices of materials;
- equipment operating
costs;
- overheads, which
include general costs and profits.
The simplest definition
of a cost estimate says that it is simply a cost plan for a given project, in
our case - a construction project.
Blind estimate
It is also called a
pre-measure or an overdraft. It
is part of a construction project. This
is a list of the amount of construction and finishing works to be carried out. They are listed in the order in which
they are to be performed. The
document also contains standards for the consumption of so-called production
factors and calculations (multiplied quantities of works by consumption
standards) which determine the quantitative inputs of given works - labor,
materials, equipment work. Labor
is given in so-called man-hours. The
material consumption, depending on its type and application, is given in m2,
m3, l, kg, etc. The work of the equipment is expressed in machine hours. This cost estimate is
"blind" because it does not contain what is the essence of cost
estimates, that is amounts. There
is only a place to add them. A
blind cost estimate that is completely completed becomes an investor cost
estimate.
Initial costing
Based on the take-off of
the works, the designer or a cost estimator can develop the expected, very
approximate cost of the investment. It
will give the investor an insight into prices and will answer the most
important questions - whether he can afford to build, whether he must take a
loan or increase its value, or seek ways to reduce construction costs.
Offer cost estimate
The initial cost
estimate is different in that it is prepared by the contractor. This is a detailed calculation of
costs for works listed in the blind estimate. It
is an offer that an investor can accept or reject if the amounts proposed there
seem too high. If the investor
considers a cost estimate, he signs the contract with the contractor.
Cost estimate
It happens quite often
that during construction works there are changes. You should then adjust the cost
estimate, because the construction costs will also change - they will increase
or maybe they will fall. For this
purpose, a replacement cost is also prepared, also called an additional or
supplementary cost estimate.
Estimated costing
This estimate is being
prepared for the completion of the work. He
is to determine the final amount to be paid to the contractors. It may be the same as predicted cost
estimate or reduced, for example, by the amounts resulting from deductions for
errors committed by the contractor or contractual penalties for delayed works.
