What is Estimation?
Estimation is the process of predicting the total cost and quantity of materials, labour, and equipment required to complete a construction project before it begins.
Why Estimation Matters
- Determines project feasibility and financial viability
- Enables accurate budgeting and resource allocation
- Forms the basis for tender documents and bidding
- Helps control project costs and prevents overruns
- Facilitates project scheduling and planning
- Critical for investment decisions and approvals
Cost Components Distribution
| Component | Typical % | Examples |
|---|---|---|
| Materials | 50-60% | Cement, sand, bricks, steel, paint |
| Labour | 15-20% | Skilled & unskilled worker wages |
| Equipment | 10-15% | Machinery rental, tools, transport |
| Overhead & Profit | 15-25% | Admin, contingency, margin |
✅ Key Takeaways:
- Estimation predicts costs before construction starts
- Includes materials, labour, equipment, and indirect costs
- Essential for financial planning and cost control
- Different estimate types serve different purposes
