Procedure or Method of Estimating in Construction

In the construction industry, estimation is a critical process used to forecast the probable cost of a project before actual construction begins. Project planning, resource allocation, and budgeting are all made easier with an accurate estimate. It helps both the client and the contractor understand the financial scope of the project, compare tenders, and avoid cost overruns. To prepare a reliable estimate, a systematic approach or procedure must be followed. The methods of estimation that are commonly used in construction are described in detail in this article.

1. Data Collection for the Project :The first step in estimation is collecting all necessary project information, which includes: Drawings: Architectural drawing , structural drawings , Electrical drawings , Plumbing drawings, and HVAC drawings. Specifications: Detailed descriptions of materials, workmanship, and standards to be followed. Site Conditions: Soil type, location, accessibility, and environmental factors. Client Requirements: Special needs, design changes, or project-specific conditions. Without complete and accurate project data, the estimate may be unreliable and misleading.

2. Selection of the Estimation Method: There are different methods of estimation depending on the nature, size, and stage of the project:

(a) Detailed Estimate In details :

• Estimate utilized when complete specifications and drawings are available.
• Multiplies the quantities of each piece of work by unit rates.
• Most accurate and commonly used method.

(b) Plinth Area Estimate Based on the plinth area (built-up area) of the building. divides the area by a common rate per square meter. Used in the initial stage for feasibility studies.
(c) Cube Rate Estimate uses the cubic content of the building (length, width, and height). Suitable for multi-story buildings.
(d) Approximate Quantity Estimate :Quantity Calculates total wall length and multiplies by standard rates. Faster but less accurate.
(e) Revised or Supplementary Estimate used when additional tasks are added or the scope of work changes. The method selected depends on the purpose of the estimate and the availability of project data.

3. Quantity Takeoff :

The estimation process's most crucial step is this. It involves: Measuring all work items as per the drawings (e.g., excavation, concrete, brickwork). In accordance with standard formats like CPWD or PWD, listing each item separately under relevant headings. utilizing appropriate formulas and unit measurements to calculate the total quantities. For example: Earthwork = Length × Breadth × Depth Brickwork = Length × Height × Thickness All measurements should be accurate and follow the latest construction measurement standards.

4. Determination of Rates :

• Each item of work is then assigned a unit rate based on:
• Material Cost: Including transportation, wastage, and taxes.
• Cost of Labor: Wages determined by productivity and labor rates in the area. Equipment/Machinery Cost: If any tools or machines are required.
• Overheads: Administrative, safety, site management, and other indirect costs.
• Profit Margin: For the contractor's profit, typically 10% to 15% is added.
• You can get rates from:
• Schedule of Rates (SOR)
• Market prices
• Previous project data Quotation from vendors or subcontractors

5. Preparation of Abstract Estimate :

After calculating the cost of each item, an abstract estimate is prepared.

• This includes:
• Serial number of each item
• Description of work
• Quantity
• Unit Rate
• Total cost of each item
• Finally, all individual costs are added to determine the total estimated cost of the project.

6. Adding Contingencies and Miscellaneous :
Costs To cover unforeseen expenses and minor changes, a percentage (usually 3–5%) is added to the total cost as contingencies. Additionally, additional costs may include: Work charge establishment Consultancy fees Inspection charges Escalation allowances These ensure that the estimate remains realistic and practical even if small changes occur during construction.

7. Finalizing and Submitting the Estimate:
The completed estimate should be reviewed thoroughly to check for: Omissions or duplications Errors in mathematics Correct application of rates and formulas Once finalized, the estimate is submitted for: the client, consultants, or authorities' approval Use in tendering, budget allocation, and project planning

Conclusion
The process of estimation is structured and requires precision, attention to detail, and technical expertise, not just a guess at the cost. When a project is properly estimated, delays and disputes are avoided and the project's financial success is assured. Regardless of whether the project is a simple building or a complex infrastructure one, efficient construction planning, decision-making, and cost control require a reliable estimate.