It will be a waste of time and money, if we are to prepare detailed plans and estimates for all contemplated works. Architects and designers, generally prepare only approximate estimates whereas the contractors have to prepare detailed estimates.
Approximate estimates are accompanied by brief reports - detailing out how the approximate estimate was arrived at, i.e. the basis and possibly with a site plan or a layout plan. A contingency provision of around 5% to 10% is added to take care of certain items that could not be foreseen.
Purpose of Approximate Estimates
Approximate estimates for all types of construction may be needed for one or more of the following purposes :
- To get an idea of the cost of a project in a preliminary study.
- To determine the suitability of taking up the project, from the point of view of investment involved and the likely return on the investment.
- To work out the tax on the property, and
- To obtain a valuation of the property for mortgage, insurance, and other transactions.
General Principle Used
Different methods are used for working out approximate estimate of structures. But the general principle used is the same; it consists of multiplying the number of items or units in the structure by the known (rates) CrossRef a similar item or unit in a similar structure. The reliability of the estimate will depend exclusively upon the applicability and accuracy of the "known cost" to the project under consideration.
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